Ottawa scrapped EV sales requirements in 2026 and is moving repeal the broader federal mandate. It announced replacement emissions standards in February with consultations on the proposed regulations running until October 29.
Electric vehicles still account for a minortiy of new vehicle sales in Canada, despite years of government incentives aimed at encouraging consumers to buy them.
Electric vehicles accounted for 11.7 per cent of new light-duty vehicle sales in Canada in the first three months of 2026, according to Transport Canada, down from a peak of 15.4 per cent in 2024.
“At this point, it’s a niche market,” McKitrick said. “Some households like the product and are willing to pay for it.”
I think the greater context is that from the US Biden Administration, there’s been an American perception that Chinese EV automakers have outpaced the US in terms of research and development of batteries, and for EVs in general. Before the US-Israel war with Iran - and likely in no small part due to it - Southeast Asia has embraced EVs. There are even indications that the sales of internal combustion engine cars in the region has slid 7%. According to Counterpoint:
“As Japanese and Korean automakers, who dominate conventional vehicle sales, lag in EV adoption, Chinese OEMs (original equipment manufacturers) are stepping in to fill the gap,” said Counterpoint analyst Abhik Mukherjee.
“Over 70% of EV sales in the region are from Chinese brands, led by BYD,” he said. In the first quarter of last year, 75% of all EVs sold in Southeast Asia were made by Chinese car makers.
https://finance.yahoo.com/news/chinese-automakers-retain-grip-over-074347596.html
The Baker Institute’s David A Gantz, in “Excluding Mexican and Chinese EVs from the United States”, also discusses how Americans take the view that the US sees the rise of Chinese EVs on the world stage as a threat that must be fought.
[W]e urge [the Department of Commerce and USTR] to take additional steps to combat the threats posed to domestic automotive manufacturing, American consumers, and U.S. national security interests by EVs made by Chinese automakers … [and] focus its investigation on the national security threat posed by the potential import of highly connected Chinese vehicles and high-risk China-controlled connected and autonomous technologies.
Canadians, much like the rest of the world, can see the world auto shows from their screens, and the Chinese EVs stand out for their value vs domestic ICE cars. Chinese automakers have also strategically pivoted to global markets outside North America. There’s plenty of demand for EVs within North America, and the market is keenly aware the US has been pushing to block Chinese EV sales within the zone. But, what Canadians also see is that companies, like BYD, have been thriving in global markets at the expense of Western automakers.
We’re waiting for the future. Canada, Europe, and the US have fallen behind on battery research and development. At this rate, partnerships with Chinese companies may be the only sensible way forward for proper battery production. I have no doubt the Americans have already considered it.