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The Markets
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Transport

Canada set to end gas-powered passenger vehicle sales by 2035 in big EV push

Canada is on the brink of a significant shift in the automotive landscape.

Environment Minister Steven Guilbeault unveiled Tuesday new regulations that will effectively cease the sale of new gasoline or diesel-powered passenger vehicles by 2035.

The Electric Vehicle Availability Standard aims to push automakers to increase the availability of battery-powered cars and trucks in Canada.

The regulations mandate a phased approach, requiring automakers to gradually increase the proportion of electric models they offer for sale each year, starting with 20% in 2026 and reaching 100% by 2035.

Guilbeault encouraged provinces to align with the plan, highlighting Quebec and British Columbia already surpassing the 20% threshold.

The federal government is investing in the EV supply chain, and Guilbeault suggests Ontario should reinstate the EV rebate program.

The policy will issue credits to automakers, promoting the sale of electric vehicles and the development of charging infrastructure.

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