Regulations Amending the Passenger Automobile and Light Truck Greenhouse Gas Emission Regulations

The approximately 30–33 manufacturers and importers of passenger automobiles and light trucks in Canada are directly affected — these are the automakers and vehicle importers who would have faced mandatory ZEV sales quotas starting with model year 2026. By scrapping the quotas, these businesses no longer need to hit specific electric vehicle sales percentages, calculate and report compliance units, or engage in ZEV credit trading — saving each regulated company an estimated $1,350 per year in administrative costs alone. More significantly, the repeal removes the risk that automakers would be forced to curtail conventional vehicle sales, buy expensive compliance credits, or heavily discount EVs to meet targets at a time when ZEV sales have dropped from 14% to 9% of the market and U.S. tariffs of 25% on non-U.S. content are squeezing production costs. The government projects consumers will avoid roughly $57.6 billion in higher upfront EV purchase and home charger costs between 2026 and 2050, though they will forgo approximately $53.8 billion in fuel savings over the same period. The automotive sector as a whole — which contributes $16.8 billion to GDP and supports 500,000 jobs including parts suppliers and dealerships — gains flexibility to sell a broader technology mix while the government develops new Canada-specific GHG standards.