Ottawa to scrap EV sales mandate, reintroduce rebates in new national automotive strategy 

February 4,2026

RED FM News Desk

Prime Minister Mark Carney is set to unveil a national automotive strategy tomorrow that will replace the electric vehicle sales mandate with new vehicle emissions standards and revive consumer rebates for EV purchases. 

The Canadian Press states that sources say the plan will also include a $1.5 billion fund to expand EV infrastructure. In September, Carney paused the EV mandate—which would have required automakers to meet specific electric vehicle sales targets—and launched a 60-day review. 

Under the new strategy, according to a report by CTV News, the government is expected to introduce average fuel efficiency standards for automakers, aiming to enforce stricter emissions rules for new vehicles. The popular EV incentive program, previously paused after its $3 billion funding ran out, is also set to return. 

The previous Liberal government had targeted EVs for 20 per cent of new vehicle sales this year, rising to 100 per cent by 2035. 

CBC News first reported some details of the strategy.