Slower market demand, tariffs and evolving production strategies cited as some of the reasons why Honda is pausing its Canadian EV plans

With Canada’s electric vehicle industry stalling this week, some are worried the sector may experience a full-scale power outage in the months ahead.

Canadian governments have offered carmakers billions of dollars to help them build EV plants in the past few years. Some are still on track, but others are in serious trouble. Here are the facts on where they stand.

A new Electric Mobility Canada report sorts through the noise to find out how and if EV shoppers will be affected by tariffs

Leigh Heppner, general manager of Preston Chevrolet Buick GMC Cadillac in Langley, told Postmedia that the rebate had been successful in drawing customers toward EVs but that cost pressures are ramping up and the lack of a rebate is likely to drive down sales.

Honda’s CA$15 billion commitment was touted by former Prime Minister Justin Trudeau as the “largest auto investment in Canada’s history.” It was to include a battery plant with an annual capacity of 36 GWh while an EV assembly plant would have been able to build as many as 240,000 vehicles per year from 2028.

More than one in four cars sold worldwide in 2025 will be electric, according to the latest projections from the International Energy Agency, and will reach 40 per cent of all new cars by 2030.