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ARTICLE · 15 OCTOBER 2025

Federal And Québec Governments To Adjust EV Sales Mandates: Key Developments And Considerations

Osler, Hoskin & Harcourt LLP
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Recent announcements by the federal and Québec governments signal a significant shift in Canada's electric vehicle (EV) policy landscape.

CanadaTransport
Hugo-Pierre Gagnon
Hugo-Pierre Gagnon
Jacob Sadikman
Jacob Sadikman
Michael Fekete
Michael Fekete
Josy-Ann Therrien
Josy-Ann Therrien
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Key Takeaways

  • The federal government paused the 2026 zero-emission vehicle sales mandate due to economic pressures and slow EV market growth.
  • Québec partially lifted its 2035 ban on gasoline vehicles, now targeting 90% ZEV sales by 2035 instead of 100%.
  • Both federal and Québec regulations will undergo revisions to better align with industry feedback and market realities.
  • Organizations in the automotive sector should monitor regulatory updates and adjust their compliance strategies accordingly.

Recent announcements by the federal and Québec governments signal a significant shift in Canada's electric vehicle (EV) policy landscape. The Canadian federal government has paused its 2026 zero-emission vehicle (ZEV) sales mandate, while Québec is partially lifting its 2035 ban on the sale of new internal combustion engine (ICE) vehicles and will revise its ZEV targets. These developments reflect a shift towards greater flexibility for the automotive sector in

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