OTTAWA — Automakers in Canada are expressing concerns about potential financial liabilities under the country’s electric vehicle (EV) sales mandate. If the mandate is enforced as currently written and sales do not increase, the industry could face billions in credit purchases.

During a recent session with a Parliamentary committee, the leader of the Canadian organization representing major automakers, including Ford, General Motors, and Stellantis, highlighted the issue. He noted that companies have already arranged deals with firms like Tesla to purchase credits to address anticipated sales shortfalls. These costs could exceed $3 billion by 2030.

The EV sales mandate stipulates that a specific percentage of new cars, SUVs, and light-duty trucks sold must be zero-emission vehicles, which also encompasses plug-in hybrids. If automakers fail to meet their sales targets, they have the option to construct charging stations to earn credits that can account for up to 10% of their sales requirements. Any additional credits needed must be purchased from other manufacturers, such as Tesla, which have exceeded their own sales obligations.

Earlier this month, the government announced a pause on the mandate for 2026 and initiated a 60-day review. However, representatives from Canada’s automotive sector are advocating for a complete repeal of the mandate.