48 Ontario Municipal Leaders Call on Ottawa to Scrap EV Mandate

A group of nearly 50 municipal leaders in Ontario is calling on Ottawa to scrap its electric vehicle (EV) sales mandate, warning of “irreversible damage” to the auto industry.

The Ontario Auto Mayors group, consisting of 48 mayors from Ontario cities and towns, requested the “immediate repeal” of the federal government’s EV sales targets mandate, in a July 24 letter to Prime Minister Mark Carney.

“The Auto Mayors passed a motion calling for the immediate repeal of the [EV mandate] before irreversible damage is done to the auto industry, local dealerships and the communities that depend on them,” the letter says.

The government’s mandate requires 20 percent of new vehicles sold in Canada to be EVs by 2026, with the share of EVs increasing each year until it reaches 100 percent by 2035, ultimately banning the sale of new gasoline-powered vehicles.

The Auto Mayors say the mandated sales targets are causing harm to Canada’s auto manufacturing industry at a time of “great economic uncertainty” due to ongoing trade disputes with the United States. The auto industry has been hit with 25 percent tariffs on both vehicles and auto parts.

Automakers who cannot meet the 2026 target will be required by the government to purchase compliance credits from competitors without a manufacturing footprint in Canada and limit sales of internal combustion vehicles. The group says this is weakening Canada’s competitiveness and “putting tens of thousands of good auto jobs at risk.”

“The automotive sector is a key driver of employment and innovation across Canada and in the communities we represent,” Auto Mayors Chair Rob Burton wrote to the prime minister.

“Now more than ever we must work together to support this vitally important sector. Self inflicted harm through damaging and redundant regulations jeopardize jobs and investment in our communities.”

While the Auto Mayors want to see an end to Ottawa’s mandated sales targets, the group says it’s not opposed to transitioning to EVs altogether and is instead calling for a shift to a “market-driven approach” that focuses on developing “practical, industry-informed strategies.”

“We support the transition to zero-emission vehicles — in a way that benefits workers, strengthens communities, and protects Canada’s auto industry,” the group said in a July 24 X post.

‘Not Sustainable’

Ford, General Motors, Honda, Stellantis, and Toyota all have auto manufacturing plants in Ontario.

The CEOs of Ford Canada, Stellantis Canada, and GM Canada, as well as the Canadian Vehicle Manufacturers’ Association, asked Carney on July 2 to repeal the government’s EV mandate, which was introduced by former Prime Minister Justin Trudeau in 2022 under Canada’s 2030 Emissions Reduction Plan.

Canadian Vehicle Manufacturers’ Association CEO Brian Kingston said the EV mandate is “not sustainable” and that the established targets “cannot be met.”

There were 15,298 EVs sold in Canada in May, which represents a 32.3 percent decline compared to the same month last year, according to Statistics Canada data. A total of 7.9 percent of all new vehicles sold were EVs.

The monthly share of new EV sales peaked at 18.29 percent in December 2024, but dropped to 6.5 percent in March this year. The decline in new EV sales has seemingly coincided with the loss of government purchase incentives.

Incentives Program

The federal government introduced an incentives program in 2019 to make electric vehicles more affordable for Canadians by providing rebates of up to $5,000 to individuals purchasing or leasing new EVs. The program was halted in January this year, more than two months earlier than it was scheduled to end, because the program’s allocated funds were fully exhausted.

Environment Minister Julie Dabrusin told reporters on June 17 that the federal government is planning for a renewed consumer rebate, but details of the program’s revitalization have yet to be released.

While the mandates were meant to increase the supply of EVs, and in turn reduce Canada’s overall greenhouse gas emissions, some EV manufacturing projects in Ontario have been put on hold.

Honda CEO Toshihiro Mibe announced on May 13 the company would be forced to postpone $15 billion in EV investments in Ontario for two years because the EV market had “slowed more than initially expected.”

Stellantis, which is the manufacturer of auto brands such as Chrysler, Dodge, and Jeep, paused production of EVs at its Windsor assembly plant in April, while GM paused production at its EV plant in Ingersoll, Ont., around the same time due to low demand for its EV offerings.

Matthew Horwood contributed to this report.