Goodbye EV sales mandate, hello purchase rebates. Carney shakes up Canada’s auto industry

Automotive Parts Manufacturers’ Association President Flavio Volpe shows Prime Minister Mark Carney, front, the Project Arrow 2.0 prototype vehicle during a tour of an auto-parts plant, Woodbridge, Ont., February 5, 2026.

Prime Minister Mark Carney is repealing Canada’s electric vehicle mandate that set a target that all new vehicles in Canada must be electric in a decade, scrapping another Trudeau-era environmental policy. Instead, Carney is taking his own approach by introducing stronger greenhouse gas emission standards for vehicle models 2027-32 to encourage automakers to produce more zero-emission vehicles.