September was an eventful month in the zero-emission vehicle (ZEV) space, with notable policy shifts and market dynamics. In the U.S., the $7,500 tax credit ended, while Canada paused its 2026 ZEV mandate for a 60-day review, and Quebec confirmed it would not ban internal combustion engine (ICE) light vehicle sales after 2035. Meanwhile, Halifax received its first shipment of German-built Teslas intended to avoid counter-tariffs. Despite these developments, ZEV sales lagged behind mandates across Canada, falling far short of the Norwegian benchmark.

Overall auto market performance was steady amid economic uncertainty, with sales estimated at 163,000 units—up 3.7% year-over-year but still below historic levels. DAC’s Andrew King noted that the September SAAR held at 1.85 million, consistent since tariffs began disrupting the market, leaving the industry under pressure from pricing and margin squeezes. Year-to-date sales rose 4.5% to 1.47 million units, with mixed results across segments: luxury brands like Genesis (+18.5%) and Lexus (+15.7%) performed well, while volume brands saw strong gains from Mazda (+16.1%), Hyundai (+15.3%), and Honda (+12.5%).