Government will restore EV rebates while scrapping mandate requiring all new vehicles sold to be electric by 2035
Today, the government introduced a new auto strategy that rewards the production of made-in-Canada vehicles and harnesses our country’s world-class capabilities in artificial intelligence and technology expertise to build the cars of the future.
The aim of this new strategy is to position Canada to become a global leader in electric vehicle (EV) production.
There are five new measures that form the foundation of the Government’s plan to revitalize the sector:
- Accelerating investment in Canada’s auto manufacturing sector which focuses on more funding to help the auto industry adapt, grow and diversify into new markets as well as reducing corporate tax rates for manufacturers to encourage investment in clean technologies and EVs.
- Making sure that emission reduction policies focus on outcomes that matter to Canadians. Stronger greenhouse gas emission standards will put the country on a path to achieving the goals of 75% EV sales by 2035 and 90% EV sales by 20240.
- Making EVs more affordable and reliable for Canadians. To achieve this, the Government is launching a 5 year EV affordability program to lower the cost for Canadians and create a stronger domestic market. Individuals and businesses may benefit from incentives of up to $5000 for battery electric and fuel EVs and up to $2500 for plug-in hybrids (PHEVs). This measure also requires our national EV charging network to grow which will be achieved through investments of up to $1.5billion, making it more convenient for drivers to charge their EVs across the country.
- Building a trade regime that strengthens the competitiveness of the auto sector. This will reward companies that produce and invest in Canada while maintaining counter-tariffs on auto imports from the USA to ensure a level playing field for Canadian manufacturers in the domestic market.
- Protecting Canadian auto workers and businesses from immediate pressures while helping them transition to the future. A new Work-Sharing grant will help prevent layoffs so businesses can plan ahead. Up to 66,000 employees across Canada can look forward to employment assistance and re-skilling support through a $570 million investment.
The Government is leveraging new and existing trade agreements to catalyse massive new investment in the sector, diversify Canada’s auto export markets, and position Canada as a global leader in EVs.
This includes a recent memorandum of understanding (MOU) signed with the Republic of Korea to strengthen Canada-Korea industrial collaboration for future mobility as well as the new strategic partnership with China which will drive new joint venture investment in Canada and allow for a fixed volume of Chinese imports into the Canadian market.
With over 500,000 workers, Canada’s automotive sector contributes over $16 billion annually to Canada’s GDP, and is one of the country’s largest export industries. Canadian workers and industries are well equipped to seize this new opportunity.
