The future of EVs is an excellent case study in the value of certainty.Doug Ives/The Canadian Press
Steve Flamand is the president and chief executive of Hyundai Auto Canada Corp., headquartered in Markham, Ont.
Federal-government incentives for electric-vehicle purchases did as they were designed to do. Before the iZEV (incentives for zero-emission vehicles) program ran out of funds, Ottawa spent about $3-billion between May, 2019, and January, 2025, giving rebates to customers buying some half a million cars.
The program was a massive success. It must return. And that is especially true in these uncertain times.
Today, the automotive industry is navigating one of the most unpredictable periods in its long and storied history. We face an imperfect storm of on-again, off-again tariffs; rapidly evolving technologies; and fierce competition from upstart Chinese automakers eager to flood our market.
In North America, the automotive sector is a $1.2-trillion industry, generating more than $500-billion in annual sales, supporting some 1.7 million direct jobs and producing 17 million vehicles each year. You don’t achieve that kind of economic output in a climate of hesitation and volatility. Or uncertainty.
Ottawa should scrap restrictive electric-vehicle regulations, GM Canada’s CEO says
Plummeting EV sales unlikely to rebound anytime soon without incentives, expert says
It might seem obvious, but this needs to be said: Historically, the foundation of the sector’s collective success has been predictability – the quiet confidence that the rules of the game don’t change mid-play. The 1965 Canada-U.S. Auto Pact marked the beginning of that era of certainty, allowing vehicles and parts to flow seamlessly across our shared border. Then came NAFTA in the 1990s, which reshaped the landscape once again, followed by the United States-Mexico-Canada Agreement in 2020. At each step, the industry adapted, evolved and continued to thrive because the core promise of tariff-free, rules-based trade remained intact.
Today, that confidence is waning – for those who sell cars and those who buy them. Uncertainty is an anchor that drags against progress.
This is where the federal EV incentive comes in. The future of electric vehicles is an excellent case study in the value of certainty. And unlike many other issues, this is one where granting certainty is within the government’s power.
Automakers have invested billions in retooling plants – or constructing new ones outright. Investments in battery plants in Canada are also under way. Electric is where the industry is going.
But like many transitions, this one hasn’t been easy. Battery plants in Quebec have been troubled by delays. The zero-emissions mandate from the government has not been popular with the sector.
Automakers need to know that if they spend money to make EVs, someone will be on the other end buying them.
With the federal election behind us, the sector eagerly awaits news on tariffs, yes, but also the restart of rebates to re-encourage EV adoption. Incentive programs are essential for climate action, as well as certainty in the sector.
Carmakers think in decades, not months. We plan for tomorrow based on the policy signals of today. We can move quickly, but we need certainty – it is what unlocks investments, sparks innovation and builds and sustains consumer trust.
Consumers put their faith in a carmaker when embarking on the second-largest purchase of their lives. Consumers rightly demand value, but also advances in tech, safety and, increasingly, sustainability. And, also increasingly, certainty.