Canada To Scrap Electric Vehicle Mandates: Subsidies Return, Green Light For Chinese Firms

February 5th news: According to Bloomberg, Canadian Prime Minister Mark Carney is about to announce a new set of fuel efficiency standards for cars and trucks.To replace mandatory electric vehicle regulations that are strongly opposed by the automotive industry.

According to a government official who wished to remain anonymous, the standard will be included in the new auto industry strategy that Industry Minister Melanie Joly and Innovation Minister Francois-Philippe Champagne are scheduled to unveil on Thursday.

Bloomberg previously reported thatThe plan also aims to safeguard automotive manufacturing jobs by providing better market access for companies that manufacture vehicles in Canada. Thousands of Canadian auto workers have lost their jobs or are on indefinite layoff since former U.S. President Donald Trump imposed tariffs on imported vehicles. General Motors has scaled back production in Canada, and Chrysler parent Stellantis NV has reversed its decision to reopen a plant near Toronto.

Canada's previous electric vehicle regulations required automakers to ensure that zero-emission vehicle sales account for at least 20% of their sales in the short term, with the goal that all new light-duty vehicles sold in Canada will be electric by 2035.

Car manufacturers vehemently oppose the regulation, claiming that the targets are unachievable, implementation costs are high, and it will lead to increased car prices and reduced consumer choice. In September, Carney already promised a review of the regulation.

With the White House seeking to increase U.S. auto assembly jobs and Trump himself making clear that his administration does not want to import cars from Canada, the long-term viability of Canada's auto industry is being called into question.

The Canadian government's automotive industry plan aims to reduce the domestic auto sector's reliance on American car manufacturers. General Motors, Stellantis, and Ford have scaled back their investments in Canada since the US tariffs were implemented, and their share of Canadian auto production has been declining for years. According to calculations by the Trillium Network for Advanced Manufacturing, Honda and Toyota produced 77% of the vehicles manufactured in Canada last year.

The official revealed thatThe Carney government also plans to reinstate purchase subsidies for electric vehicle consumers.The subsidies will be comparable to the previous zero-emission vehicle program, which offered consumers rebates of up to CAD 5,000 (approximately RMB 25,452), and expired about a year ago.

Another government official told Bloomberg last month that Carney recently stated,Canadian government open to Chinese companies assembling cars in Canada for the first time. , but such cooperation will be subject to restrictions, which may include the use of Canadian-made software and forming joint ventures with Canadian companies.

In January, Carney reached an agreement with the Chinese side.Chinese automakers are allowed to export 49,000 electric vehicles to Canada at a preferential tariff rate of 6.1%. 。