News Releases

Ottawa Puts Brakes on the ZEV Mandate and Re-Instates Incentives as NCDA Urges the B.C. Government to Follow Suit

By February 5, 2026No Comments2 min read

The New Car Dealers Association of BC (NCDA) says the federal government’s decision to end the Zero-Emission Vehicle (ZEV) mandate and re-establish EV purchase incentives are long-overdue recognition of market reality – and is urging the BC Government to follow suit.

After years of warning that ZEV mandates were disconnected from consumer demand, affordability pressures, and infrastructure readiness, NCDA says Ottawa’s decision marks a critical reset in automotive policy.

“This is a significant and positive course correction,” said NCDA President and CEO Blair Qualey. “Mandates don’t sell vehicles – consumer demand does. The federal government has acknowledged that reality, and we hope to see the provincial government do the same.”

The NCDA has consistently argued that ZEV mandates – at the federal and provincial level – place unfair pressure on consumers and dealers while doing little to meaningfully accelerate adoption. Without intervention, automakers face a $20,000 penalty for every vehicle falling under the quota – and those costs will undoubtedly be passed onto the consumer. Rising vehicle prices, uneven access to charging infrastructure, and the removal of purchase incentives have all combined to undermine the policy’s effectiveness.

“Ending the federal mandate sends a clear message: forcing targets without market support doesn’t work,” Qualey said.

The Association stresses that ending mandates does not mean abandoning emissions reduction goals. Instead, NCDA says governments should focus on practical, consumer-focused measures that actually support adoption – including restored purchase incentives, improved charging infrastructure, and policies that protect affordability and choice.
The NCDA also strongly supports the anticipated return of federal EV purchase incentives – a measure the association has consistently called for as a means of supporting clean energy vehicle adoption.

“Restoring federal EV incentives is essential if governments want adoption to grow in a realistic and sustainable way – and once again, we will be looking to the provincial government to follow suit.”

The association also welcomes the federal government’s intention to revise its auto tariff remissions strategy to better recognize vehicles manufactured in Canada – and the creation of a federal automotive strategy task force and is calling for strong dealer representation.