Sask. dealerships pleased with 2026 EV target pause

WATCH: Sask. auto dealerships are pleased to see the federal government's decision to pause zero emission vehicles sales.

Saskatchewan’s auto dealerships are pleased to see the federal government’s decision to pause a zero emission vehicles sales mandate mainly due to lacking infrastructure and market demand.

On Sept. 5, Prime Minister Mark Carney announced the federal government would pause its 2026 mandate requiring 20 per cent of all new passenger cars sold in Canada be zero-emission vehicles as part of a new strategy to support sectors impacted by U.S. President Donald Trump’s tariffs.

“Truly, it was a cart before the horse sort of a scenario,” Larry Heggs, the executive director of the Saskatchewan Automotive Dealerships Association, said.

As part of the pause, Ottawa will undertake a 60-day review of the mandate’s framework during the break to reduce economic pressures on automakers due to tariffs.

Heggs says in Saskatchewan, electric vehicle sales have increased year over year, but the charging infrastructure was holding the province back from making the 20 per cent goal a reality, and further casts doubt on the federal government’s goal of having all new vehicles being a zero-emission vehicle by 2035.

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“Based on the California numbers of 12 vehicles for one charger, we were going to be on pace to be over 52,000 chargers short in the province alone, by 2035,” he said. “So, really, it was not a possibility.”

Sales aren’t hurting either, with overall vehicle sales on track to be one of the best sales years in the last 10 years. Monthly sales are up more than 14 per cent compared to last year, with 36,382 vehicles sold at Saskatchewan dealerships at the end of August. Sales are on track to exceed 54,000, which would make 2025 the best sales year since 2017.

Overwhelmingly, customers are choosing traditional vehicles or zero-emissions vehicles.

“We’ll sell what people want, but the infrastructure has to be there,” Heggs said.

According to SGI, electric vehicle sales have been rising over the last three years.

At the end of 2023, there were 1,771 EVs registered in Saskatchewan. That number jumped to 2,500 by the end of 2024. As of Sept. 17, there are 2,916 EVs registered.

Earlier this year, the federal government announced a pause to the Incentives for Zero-Emission Vehicles Program, which offered up to $5,000 of rebates when buying or leasing electric vehicles, because funds were fully exhausted.

“There’s always the economies of scale part,” Heggs said. “Until we get enough vehicles out there, the manufacturers can’t really reduce [prices] until they have the volume.”

During the 60-day review, Heggs says he’s working with other provincial and federal counterparts to have more vehicles included in the mandate when, or if, it resumes.