CANADA ANNOUNCES NEW EV STRATEGY TO TRANSFORM AUTO INDUSTRY

OTTAWA, Feb 6 (Bernama-Xinhua) -- Canadian Prime Minister Mark Carney on Thursday announced a new electric vehicle (EV) strategy to transform the country's auto industry, with consumer incentives and corporate tax cuts, reported Xinhua.

Under the strategy, the Canadian federal government will launch a five-year, C$2.3-billion "EV Affordability Programme," according to a news release from the prime minister's official website.

The programme will offer consumers purchase or lease incentives of up to C$5,000 (about US$3,658) for battery-electric and fuel EVs, while those opting for plug-in hybrids can receive up to C$2,500.

The government has also earmarked over C$3 billion to help the auto industry adapt, grow, and diversify to new markets, while C$1.5 billion will be invested to expand the national EV charging network.

Corporate tax cuts will be offered to zero-emission technology manufacturers to encourage investment in clean technologies and EVs, said the release, adding that stricter greenhouse gas emission standards will be implemented to have EVs account for 75 per cent of all new car sales by 2035, and 90 per cent by 2040.

Carney said in the release that the Canadian government will leverage existing and new trade agreements -- including the recent EV arrangement with China -- to catalyse massive new investment in the sector, diversify Canada's auto export markets, and position Canada as a global leader in EVs.

The release noted that currently, over 90 per cent of Canadian-made vehicles and 60 per cent of Canadian-made auto parts are exported to the United States, adding that US auto tariffs are threatening Canada's auto manufacturing industry and the 125,000 direct jobs it supports.

Counter-tariffs on auto imports from the United States will be maintained by the Canadian government to ensure a level playing field for Canadian auto manufacturers in the domestic market, said the release.

--BERNAMA-XINHUA