The Canadian Automobile Dealers Association is urging Ottawa to reset the federal Zero-Emission Vehicle mandate, arguing that current sales targets are no longer realistic for consumers or the market.
The association made the comments in a press release and to federal MPs in a committee meeting in Ottawa.
CADA said dealers have invested heavily in the EV transition. But the association now warns the pace set by government is out of step with affordability pressures and limited product availability. Cost remains the biggest obstacle for buyers. National figures show 67 per cent of Canadians expect to spend under $500 a month on a vehicle.
“The expectations set out in the ZEV mandate do not match what is happening in the marketplace,” said Tim Reuss, CADA President, in a statement. “With affordability concerns rising and new pressure created by U.S. tariffs, continuing on the current path risks making vehicles even more expensive for Canadians and undermining the competitiveness of our sector.”
CADA released figures saying the average payment a month on a vehicle has climbed to $770 for leases and $880 for loans. These are increases driven by tariffs, supply constraints and rising interest costs. Dealers say those numbers are pushing many households to postpone replacing older vehicles.
CADA said uneven charging infrastructure and weaker EV demand in rural regions add further strain. “Current EV targets simply don’t reflect what we’re seeing on the ground,” said Charles Bernard, CADA’s Chief Economist. “Canadians are under growing financial pressure, and policy has to align with what consumers can actually afford.”
Appearing before the committee CADA proposed suspending the mandate until Canada’s trade negotiations with the U.S. and Mexico conclude, counting all hybrids toward future targets, aligning provincial and federal frameworks, excluding EVs and hybrids from the luxury tax, and preventing companies without a Canadian manufacturing or retail footprint from profiting through credit sales.
