Canada

I'm wondering if that's what this legislation will do.

It's focused on ensuring that a target % of all cars a manufacturer sells be electric. And in order to do that, they need to get more people to choose to buy electric.

They can achieve that by raising the prices of their ICE vehicles and selling less overall volume, but the proportion of EVs would be higher. or the seemingly easier option would be to create more cheaper EV options that people are interested in buying.

Plus, making those budget cars would be a little lighter (less motors and electronics), require less precious metals (less electronics), and therefore be more a little more energy effecient as well as cheaper to maintain (less electronics to replace).

The fundamental problem is that battery powered EVs, or BEVs, need vast amounts of raw material when manufactured. That basically guarantees that BEVs are never going to be cost effective once you get past small and short-ranged cars. That ensures that BEVs are simply not going to be the main type of cars. They are really ideal for things like e-bikes or golf carts, not larger vehicles like SUVs or commercial vehicles.

In reality, society needs to focus on non-BEV forms of zero emissions transportation. Ideally, that means more mass transit or walkable neighborhoods. But for situations where the car is unavoidable, it is almost certain that we have to find a true replacement for conventional ICE cars. If not e-fuels, then something like hydrogen cars.

There are many models under 35k after incentive, add to that the fuel economy and if you can afford to pay 35k + gas for a car, you can afford 40k after incentive for an electric car, especially if you plan on financing it, saving 2.5k a year in gas for five years, that's 12.5k saved in total.