Canada’s electric vehicle strategy may be shifting gears, with certain requirements imposed on businesses being delayed as Ottawa considers a new approach.

Prime Minister Mark Carney announced on Friday the federal government is delaying plans to impose minimum sales requirements on car companies for 2026 model years of electric vehicles (EVs), and a 60-day review is being launched that will reassess the current EV mandate program.

“To add flexibility to the automotive sector, we will remove the 2026 electric vehicle availability standard, which specifies the share of new vehicle sales that must be electric next year. This will provide immediate financial relief to automakers at a time of increased pressure on their competitiveness,” Carney said in a speech on Friday.

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