The federal government has reached a trade agreement that will allow Chinese-manufactured electric vehicles into the Canadian marketplace, adding a new competitive dynamic to an already complex automotive market. On its own, that decision reflects trade and consumer-choice considerations. Combined with rigid federal and provincial Zero-Emission Vehicle mandates, however, it reinforces the case for governments to put the brakes on ZEV mandates once and for all.
British Columbia’s new car dealers support electrification. Our members sell zero emission vehicles every day, invest in training and charging infrastructure, and work directly with consumers navigating one of the most significant transitions the automotive sector has ever faced.
But support for electrification does not mean support for policies that distort markets, undermine consumer confidence, and impose unnecessary costs on Canadians.
British Columbia’s ZEV mandate closely mirrors the federal framework. Together, they require automakers and dealers to push increasing volumes of electric vehicles into a market that is clearly signaling hesitation. When two levels of government enforce parallel mandates without flexibility or coordination, the result is forced inventory, higher costs, and growing instability across the marketplace.
Affordability sits at the center of this problem. Household budgets are stretched. Vehicle prices have climbed. And In British Columbia, the suspension of the CleanBC Go Electric rebate program – combined with a Luxury Tax that kicks in at $55,000 – has intensified affordability pressures. As a result, EV demand fell sharply in 2025, not because interest declined, but because the economics no longer made sense for many consumers.
The federal government’s decision to pause its ZEV mandate for 2026 acknowledged some of these pressures. But the regulation remains in force for the years that follow, with targets escalating rapidly toward 100 per cent by 2035. British Columbia’s mandate continues on a similar trajectory. This has not delivered certainty. It has prolonged risk at precisely the moment when manufacturers and dealers are making long-term planning decisions.
Mandates compel manufacturers to ship vehicles regardless of consumer demand. Dealers are then left holding increasingly expensive EV inventory that may sit longer on lots, require heavier discounting, and tie up capital that would otherwise support staffing, facility investment, and customer service.
The NCDA has consistently raised concerns that rigid ZEV sales mandates – coupled with penalties of up to $20,000 per non-compliant vehicle – do not reflect current market realities. These punitive measures do not improve affordability or accelerate adoption. Instead, they increase costs across the system and risk reducing consumer choice, with those costs ultimately borne by British Columbians.
If governments are serious about reducing emissions, both Ottawa and Victoria both need to put the brakes on ZEV mandate policy. That means stopping escalation at both levels, aligning policy frameworks, and refocusing on what actually drives adoption: affordability, reliable charging infrastructure, and consumer choice.
A successful transition requires balance. Canadians need access to affordable hybrid, plug-in hybrid, electric vehicles, and traditional internal combustion vehicles – not policies that restrict choice or penalize families who simply cannot absorb higher costs.
Electrification will succeed. But it will not succeed through oversupply, uncertainty, and market distortion. A coordinated federal–provincial reset is not a retreat from climate goals – it is a necessary correction to protect consumers, dealers, and the long-term credibility of the transition itself.
Blair Qualey is President and CEO of the New Car Dealers Association of BC.
You can email him at [email protected]
