A few weeks ago, Alberta Premier Danielle Smith and her United Conservative Party (UCP) colleagues called on Prime Minister Mark Carney to drop the federal Electric Vehicle (EV) mandate that requires all new vehicles sold in the year 2035 to be EVs. Alberta’s Transportation Minister, Drew Dreeshen, has called this mandate “straight-up lunacy.” He also stated that the EV mandate was unconstitutional and likely to lead to “significant increases in vehicle prices and utility costs.” Dreeshen also noted that Alberta’s electricity grid is not able to manage the demand surge that would come from a transition to EVs. There is no evidence that other provinces’ grids would be able to handle this either.
In a supposed democracy the government has no business telling Canadians what types of products they must buy. This belongs in a communist system – if anywhere – not the true north strong and free. Dreeshen has also said he has no problem with EVs, and consumers should be able to purchase them if they so choose, which is the way things are now.
But market forces alone don’t seem to be working very well for the EV advocates. Recent data show that there has been a significant softening in demand for EVs in Canada over the last couple of years. This is partly due to the ending of subsidies by the federal and Quebec governments in recent months. These and other government subsidy programs for purchasers of EVs were always foolish, as EV prices remained high even with the subsidies so it ended up that well-off purchasers of EVs were being subsidized by the taxes of middle- and lower-income groups who couldn’t afford the high EV price tags. Hardly a sensible policy.
Some early adopters of EVs have also had an unfortunate experience with them and now state they will never buy another EV again. People are finding that the used EV market is problematic as many EVs need such parts as a new battery, which could cost up to $30,000 dollars. EVs have also proven to be unreliable in cold Canadian winters and are much more suited to an urban environment than for drivers who must travel long distances. These factors have also dampened EV demand.
Current estimates of the percentage of EVs on the road today in Canada today are around 10 to 15 per cent of all vehicles. In 2024, EVs represented about 13 per cent of all new vehicles sold. While most Canadians are at least somewhat aware of the EV policy dictated by the Liberal government, most likely don’t know that it actually is planned to be phased in shortly at the beginning of 2026. Next year, EVs are supposed to be 20 per cent of all new light-duty vehicles sold in auto dealerships. This is quite an increase from the percentage of new EVs being sold today, especially as demand appears to be on the decline. The policy dictates that this percentage will increase annually until it reaches 100 per cent in 2035.
The automobile manufacturing sector has made a number of representations to the Carney government on this policy, detailing how damaging it will be to the auto sector. Automakers stated that the targets the government has set are virtually impossible to meet. They also noted how the industry is currently under pressure from the U.S. administration in terms of new tariffs being levied, so this is absolutely the worst time to introduce a new and problematic policy for the auto sector. Car dealerships have also said if they are forced to sell a certain proportion of EVs no matter what customers are demanding, it could well end up that prices for traditional internal combustion engine (ICE) vehicles will be inflated to reduce demand. In other words, no matter what the customer is looking for, they will be paying more for it at a time when the economy is weak, unemployment is increasing, and inflation is still a threat.
For all of these reasons, the Ford government in Ontario should band together with Alberta to convince the federal Liberals to drop the foolish EV mandate for good. A recent survey of Canadians by the Leger polling firm found that a growing majority of Canadians – 71 per cent – believe that the EV mandate is unrealistic and should be scrapped. Conservative Leader Pierre Poilievre has also said that getting rid of the EV mandate will be a top priority for the Conservative opposition this autumn. As the auto industry is centred in Ontario, it makes perfect sense for Ford to join the voices against this policy and advocate for its demise. Given how cozy Ford has been with Carney, he may have some reservations in doing this but, just for a change, it would be nice to see pragmatic economic considerations prevail over political biases.
The EV mandate is yet another Liberal policy, supposedly driven by climate considerations, that will not work for Canada and will actually be a detriment to our economic growth, competitiveness and badly-needed employment. Getting rid of it should be a no-brainer for the Liberals. Ford adding his voice from Canada’s largest province and home of the auto industry should seal the deal.
She has published numerous articles in journals, magazines & other media on issues such as free trade, finance, entrepreneurship & women business owners. Ms. Swift is a past President of the Empire Club of Canada, a former Director of the CD Howe Institute, the Canadian Youth Business Foundation, SOS Children’s Villages, past President of the International Small Business Congress and current Director of the Fraser Institute. She was cited in 2003 & 2012 as one of the most powerful women in Canada by the Women’s Executive Network & is a recipient of the Queen’s Silver & Gold Jubilee medals.
