Canadian Prime Minister Mark Carney on Thursday announced a new electric vehicle (EV) strategy to transform the country's auto industry, with consumer incentives and corporate tax cuts.
Under the strategy, the Canadian federal government will launch a five-year, 2.3-billion-Canadian-dollar "EV Affordability Program," according to a news release from the prime minister's official website.
The program will offer consumers purchase or lease incentives of up to 5,000 Canadian dollars (about 3,658 U.S. dollars) for battery-electric and fuel EVs, while those opting for plug-in hybrids can receive up to 2,500 Canadian dollars.
The government has also earmarked over 3 billion Canadian dollars to help the auto industry adapt, grow, and diversify to new markets, while 1.5 billion Canadian dollars will be invested to expand the national EV charging network.
Corporate tax cuts will be offered to zero-emission technology manufacturers to encourage investment in clean technologies and EVs, said the release, adding that stricter greenhouse gas emission standards will be implemented to have EVs account for 75 percent of all new car sales by 2035, and 90 percent by 2040.
Carney said in the release that the Canadian government will leverage existing and new trade agreements -- including the recent EV arrangement with China -- to catalyze massive new investment in the sector, diversify Canada's auto export markets, and position Canada as a global leader in EVs.
The release noted that currently, over 90 percent of Canadian-made vehicles and 60 percent of Canadian-made auto parts are exported to the United States, adding that U.S. auto tariffs are threatening Canada's auto manufacturing industry and the 125,000 direct jobs it supports.
Counter-tariffs on auto imports from the United States will be maintained by the Canadian government to ensure a level playing field for Canadian auto manufacturers in the domestic market, said the release.
Canada announces new EV strategy to transform auto industry
