Ottawa to relaunch EV rebates program in 2 weeks with new auto strategy

The federal government announced a suite of new electric vehicle policies Thursday, including the reintroduction of the popular rebate program and the elimination of the EV sales mandate in favour of new emission standards.

Speaking at an auto parts manufacturer in Woodbridge, Ont., Prime Minister Mark Carney said Ottawa is restoring the rebate program with $2.3 billion to help Canadians cover the cost of a new EV, and $1.5 billion for EV infrastructure like charging stations.

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Government officials at a technical briefing Thursday were unable to say exactly what impact these new measures will have on Canada’s overall emissions, and promised to publish modelling in the months to come.

Ottawa’s target is to have a 75 per cent EV adoption rate by 2035 and a 90 per cent rate by 2040. The sales mandate Carney is eliminating would have required that 100 per cent of new passenger vehicle sales be electric by 2035.

Ottawa will offer $5,000 toward the cost of a new EV and $2,500 toward plug-in hybrids. Those rebates will decrease every year until they’re phased out after 2030 — or until the money for the program runs out.

The government says it is hoping the program will help put 840,000 new EVs on the road.

The rebates will only apply to vehicles which cost less than $50,000 and are imported from a country with a free-trade agreement with Canada — meaning the Chinese EVs Ottawa is allowing into the country won’t be eligible for the rebates.

Canadian-made EVs, which right now include only the Dodge Charger and the Chrysler Pacifica, are exempt from the $50,000 cap.

This report by The Canadian Press was first published on Feb. 5, 2026.