Mark Carney’s Liberals Uphold 2035 Gas Vehicle Ban and EV Sales Mandate Despite $20K Cost Rise, Job Risks, and Automakers’ Cautious Optimism

The Canadian Liberal government, led by Prime Minister Mark Carney, is proceeding with a mandate to phase out the sale of new gas-powered vehicles by 2035, requiring 20% of new vehicle sales to be zero-emission by 2026, 60% by 2030, and 100% by 2035. This policy has faced strong opposition from Conservative MPs and industry stakeholders who argue that it will increase vehicle costs by up to $20,000, threaten approximately 38,000 to 40,000 jobs in the automotive sector, and disproportionately impact rural communities and consumers reliant on affordable and practical vehicles. Conservatives tabled motions to repeal the ban and halt the electric vehicle (EV) mandate, but these were defeated in Parliament with support from the Liberals, NDP, and Bloc Québécois. Automakers have expressed concerns about declining EV sales and the feasibility of the ban, urging Carney to reconsider or modify the mandate.

Following a private meeting between Carney and auto industry executives, automakers have become cautiously optimistic about potential adjustments to the policy. Meanwhile, environmental groups have warned against repealing the federal EV mandate, emphasizing its importance. The federal government has indicated that the mandate must reflect current circumstances but has not announced any definitive changes. The debate continues amid growing pressure on the government to balance environmental goals with economic and consumer impacts.