Mark Carney’s Liberals Uphold 2035 Gas Vehicle Ban, EV Mandate Despite $20,000 Cost Increase, 40,000 Job Risks, Automakers’ Cautious Optimism

The Canadian Liberal government, led by Prime Minister Mark Carney, has maintained its plan to ban the sale of new gas-powered vehicles by 2035, enforcing a federal electric vehicle (EV) mandate that requires 20% of new vehicle sales to be zero-emission by 2026, increasing to 60% by 2030, and 100% by 2035. This policy has faced strong opposition from Conservative MPs and various industry stakeholders who argue that the ban will increase car prices by up to $20,000, threaten nearly 40,000 Canadian jobs, and disproportionately affect rural communities and industries reliant on long-distance travel. Conservatives have repeatedly tabled motions to repeal the ban and the EV mandate, emphasizing consumer choice and warning of economic and social consequences, but these motions have been defeated by the Liberals, NDP, and Bloc Québécois. Automakers have expressed concerns about the mandate's feasibility amid declining EV sales and have urged Carney to reconsider the policy.

Following a private meeting between Carney and auto executives, industry representatives have become cautiously optimistic about potential changes to the mandate, although no formal amendments have been announced. Critics also link the mandate to broader environmental agendas and carbon tax-like impacts, highlighting the financial burden on consumers and questioning the practicality of EVs in Canada's climate and geography. Despite mounting pressure from industry and political opponents, the Liberal government continues to advance the EV sales quota and gas vehicle ban as part of its environmental strategy.