The number of New Car Dealers in Canada businesses has declined -4.5% per year on average over the five years between 2019 and 2024. While new car sales in Canada have recently shown some increase, the number of new car dealerships has been declining.
EV Mandate by the Numbers
Starting in 2026, the federal government will require that 20% of new light-duty vehicles sold be zero‑emission (ZEV). That threshold rises each year until every new vehicle sold must be ZEV by 2035. Eligible types include:
- Battery-electric vehicles (BEVs)
- Plug-in hybrid electric vehicles (PHEVs)
- Hydrogen fuel cell vehicles (FCVs)
Charging a “Zero‑Emission” Vehicle
Ask yourself: Can you truly power a ZEV emission-free? After all, solar panels, wind turbines—even the batteries themselves—carry an environmental cost during production. As of now, no Canadian province has achieved economy-wide net-zero emissions, so charging a ZEV at home or at work may still rely on fossil fuels.
A Mandate in a Deflating Economy
- Declining industry: Emissions in Canada are falling—but not because of green progress. Manufacturing jobs and investment are drifting south, especially in Ontario, driven by unfavourable operating conditions here.
• Foreign buyers: Meanwhile, many residents who can’t sell their homes because high mortgage rates or low wages remain silent—and some are living mostly off social assistance. Don’t forget: those collect welfare and can vote.
• Demographic drain: With Baby Boomers retiring and many adult children in the government system still receiving pensions, Canadians are increasingly reliant on public-sector spending—strengthening support for policies that protect benefits at everyone else’s expense.
EV Push = Corporate Welfare
Make no mistake: this mandate is rooted in corporate welfare, not environmental virtue. Already, auto dealerships are shutting down across Canada—and that trend is likely to accelerate. Dealers face skyrocketing compliance costs to meet escalating ZEV targets. They remain on the hook to the government—even if vehicle demand collapses.
Governments Love Low Financial IQ
Canada is among the least entrepreneurial countries in the OECD. Most Canadians don’t understand finance—they rely on simplistic slogans. That’s why Justin Trudeau’s carbon tax blamed “greedy grocery stores,” while Mark Carney rode the “elbows up” wave in 2025 appealing to low IQ Canadians, who imagined patriotism could change the current economic realities..
Why This Strategy Is Flawed
Higher car prices: Whether buying new or used, rising ZEV prices don’t register with those not car-shopping. Liberals have become masters attacking “the rich.” Yes if you have a car, in the eyes of those without you’re “rich.” People get angry with me because I write on “Rich in Writers” because the word “Rich” is in it.
People getting “triggered” is nothing new, and for those without cars, they don’t care about what happens to those with cars. What’s flawed about this strategy by the Liberals, is that this attack on car dealerships is going to hurt the SMALL BUSINESS sector the most, which even includes Uber and Lyft drivers.
Most people LEASE or finance their vehicles, obviously if I use my vehicle for commercial purposes, likely it’s NOT going to be an EV. However if the liberals are successful, it turns Canada into more of a service sector economy, while their immigration mandates bombard Canada with LOW-SKILLED immigrants.
- • Inflation vs. deflation: Even as new car prices climb, the economy may be contracting—especially when public debt rises unchecked.
• Banker mentality: Carney approaches Canada like a debt-servicing banker: keep spending, borrow more, and hope cash flows positive. But if national finances evaporate, Canada won’t qualify for future loans.
When I say Canada won’t qualify for future loans, it means at the very least the DOMESTIC purchasing power of the Loonie is going to continue to lose value.
What most people don’t understand about this new reality is that more venders will start to PASS on Canada, because profit driven private companies, are looking to make a profit, and if Canadian consumers are tapped out because of high domestic prices, there are fewer reasons to hoard Canadian dollars.
The foreign exchange markets, or the value the international community gives to the Canadian dollar shouldn’t be confused with the domestic purchasing power. If a Canadian can get more bang for their buck OUTSIDE of Canada than they can inside Canada, the Canadian governemnt will be incentivizing people to spend Canadian dollars outside of Canada.
This is not smart because most people want to be paid back in US dollars, which doesn’t DING you internationally as had when you make international purchases.
A Bleak Economic Picture
- Aging, indebted provinces: Canada’s regions are overstretched: rising healthcare costs, shrinking workforce due to aging, and massive debts.
• Brain drain: Skilled Canadians and new immigrants increasingly look to greener pastures.
• Housing dysfunction: Low sales and high prices will persist, deepening a stagnant economy.
• Dealer devastation: Forced ZEV conversion could kill dealerships—especially in regions where electric infrastructure is lacking.
Final Take
Canada’s EV mandate isn’t about environmental responsibility—it’s a corporate welfare transfer that worsens economic decline. With aging populations, provincial bankruptcies, weak infrastructure, and shrinking opportunity, the last thing Canada needs is a policy that pressures consumers and kills industries.