Prime Minister Mark Carney has announced that the federal Zero Emissions Vehicle (ZEV) sales mandate, originally set to begin in 2026, will be delayed as part of a broader industrial strategy called “Building Canada Strong.”
The 60-day review will assess the mandate’s economic impact and feasibility, a move aimed at stabilizing Canada’s auto industry amid U.S. tariffs and slowing electric vehicle sales.
The announcement is being welcomed in New Tecumseth, home to Honda of Canada Manufacturing in Alliston. Local leaders and industry partners, including the newly formed Simcoe County Auto Mayors, have been advocating for a more flexible approach that includes non-plug-in hybrid vehicles.
“This decision is a critical step toward stabilizing our local economy and protecting jobs,” says Mayor Richard Norcross. “While it’s a big win for New Tecumseth and our communities, we must continue working with Ottawa to address tariff challenges that still threaten our competitiveness.”
Industry leaders also praised the decision. Honda Canada highlighted the opportunity to consult with the government on policies that reflect current market demand and support made-in-Canada hybrid vehicles, noting that their local models, including the Civic Hybrid and CR-V Hybrid, are already popular with Canadians.
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