BMW M’s high-performance vehicles will soon deliver the ‘Ultimate Driving Machine’ experience in electric form. Photo: courtesy BMW Group
The Canadian Automobile Dealers Association (CADA) has applauded the federal government’s Feb. 5, 2026 announcement of the Auto Strategy, including the decision to end the federal electric vehicle mandate.
“[This] announcement by Prime Minister Carney is a strong commitment by the government to the automotive industry and demonstrates their ability and willingness to respond to market realities and consumer demand,” said Tim Reuss, CADA President and CEO. “The expanded and adjusted support measures aimed at maintaining Canada’s vital automotive manufacturing sector are essential as we enter the critical phase of the CUSMA renegotiation with the US. Dealers across Canada, particularly applaud the government for ending the EV mandate and choosing a better path forward for EV adoption that is more in line with diverse technology, charging infrastructure and overall consumer demand.”
Reuss further noted that the 3,500 dealer members across Canada are in no way turning away from EV adoption: “Dealers have invested heavily in EV infrastructure to sell and service EVs in Canada. Consumer choice in terms of vehicle options for low emission choices has expanded dramatically in Canada, and now manufacturers have the ability to deliver emissions solutions which are technologically neutral.”
CADA also praised the reintroduction of EV purchase incentives, noting that the announcement underscores the need for incentives to encourage consumer adoption of electric vehicles. The affordability gap for electric vehicles at the time of purchase remains a pinch point, and the government’s approach of incentivizing consumers rather than limiting the market is the right step to ensure consumer affordability.
CADA also highlighted the critical elements of the automotive strategy that will help ensure a reliable automotive supply chain in Canada:
“During this trade rupture, it is critical that we have a strategy that is bold and eliminates policies that were made before current market and technology realities,” said Reuss. “CADA continues to work on both sides of the border to highlight that auto tariffs between Canada and the US are bad for the economies of both countries, bad for dealers and, most importantly, bad for the millions of consumers they serve.”
The Canadian Automobile Dealers Association is a federation of provincial and regional dealer associations representing 3,400 franchised automobile and truck dealerships that sell new cars and trucks in Canada. These dealers collectively employ more than 178,000 people nationwide and are a key sector of Canada’s economy.