This is Queen Street Analytics' weekly digest of regulatory developments, legislative discussions and other government-related news for car manufacturers, parts suppliers, car dealers, rental companies, and importers/exporters in the automotive industry. Once a week, we break down the most important updates in this space in under five minutes.

Want to track the upstream and downstream forces affecting Automotive? Don’t miss this week’s updates in Manufacturing and Oil & Gas. Also consider subscribing to our Automotive - Washington edition covering critical GR news south of the border.

Dates: 2026-03-15 to 2026-03-21

📋 In This Week's Newsletter

• 🏛️ This Week's Parliamentary Calendar
• 🇨🇦 Federal Government News
• 🗺️ Provincial Government News
• 📚 What We're Reading This Week

This Week's Parliamentary Calendar

• House Transport, Infrastructure and Communities Committee — Changing Landscape of Truck Drivers in Canada: On March 23, 2026, the committee will study the changing landscape of truck drivers across Canada, including testimony from individuals and Canada Post executives. Transport infrastructure and port modernization topics will also be discussed between 11:00 a.m. and 1:00 p.m.
• House Industry and Technology Committee — AI Regulation in Strategic Industries: Set for March 23, 2026, the committee will review opportunities, risks, and regulations related to artificial intelligence in Canada's strategic industries, with expert witness panels scheduled from 3:30 p.m. to 5:30 p.m.
• House Environment and Sustainable Development Committee — Industrial Carbon Pricing: The committee will meet March 24, 2026, to study industrial carbon pricing mechanisms, featuring testimony from think tanks, environmental groups, and academic experts from 3:30 p.m. to 5:30 p.m.
• Senate Committee on Energy, Environment and Natural Resources — Federal Sustainable Development Strategy: On March 26, 2026, the committee will examine topics including the 2026–2029 Federal Sustainable Development Strategy draft, the Committee on the Status of Endangered Wildlife, and a progress report on the 2030 Emissions Reduction Plan at 8:00 a.m.

Federal Government News

Repair and Maintenance Services Subsector Data for 2024 Published

Statistics Canada released its 2024 data for the repair and maintenance services subsector. The dataset provides new industry metrics relevant to automotive aftermarket, vehicle servicing operations, and parts suppliers. The latest figures are accessible through Statistics Canada’s data portal. Industry analysts may review performance indices and service volumes for tracking market trends and segment activity across Canadian regions. The release forms part of the government's scheduled publication of annual economic indicators for the automotive-related service sector.

Sources: www.statcan.gc.ca

Refined Petroleum Products Data for February 2026 Available

Data on the production and inventories of refined petroleum products in Canada for February 2026 are now available from Statistics Canada upon request. These figures detail fuel output and inventory levels which inform cost and logistics modeling for fleet operators, vehicle dealerships, and manufacturers. The dataset covers trends in gasoline, diesel, and other refined fuels relevant to cost forecasts for distribution and consumer pricing.

Sources: www.statcan.gc.ca

Transportation Sector Output Rises 16.9% in 2022, Now 7.8% of National GDP

The Canadian Transportation Economic Account reports a 16.9% increase in the output of transportation activities in 2022, reaching $502.2 billion. Total contribution to national gross domestic product was $216.4 billion, equivalent to 7.8% of Canada’s GDP. These results capture the aggregate economic weight of the transportation and logistics ecosystem, which includes vehicle sales, services, and supporting industries.

Sources: www.statcan.gc.ca

January 2026 New Motor Vehicle Sales Down 5.6% Year-Over-Year

In January, 114,415 new motor vehicles were sold in Canada, a 5.6% decrease compared to January 2025. Total sales value fell 6.1% over the same period. The decline was more pronounced for new passenger cars, which were down 18.2%, while new trucks fell 3.9%. These figures offer a metric for tracking sector demand and inventory outlook for dealerships and manufacturers.

Sources: www.statcan.gc.ca

Motor Vehicle and Parts Dealers Drive Retail Sales Gains in January

Statistics Canada reported that retail trade values rose 1.1% in January to $70.7 billion. Six of nine subsectors showed increased sales, with motor vehicle and parts dealers leading gains. The retail sector’s performance points to sustained consumer activity in vehicle sales and aftermarket parts during early 2026.

Sources: www.statcan.gc.ca

Industrial Product and Raw Materials Price Indexes Increase in February 2026

The Industrial Product Price Index posted a 0.4% month-over-month increase in February and a 5.4% rise year-over-year. The Raw Materials Price Index edged up 0.6% for the month, recording an 8.6% annual gain. These indexes provide an input pricing reference for vehicle manufacturers, aftermarket part producers, and supply chain stakeholders.

Sources: www.statcan.gc.ca

Poilievre Proposes Tariff-Free Auto Industry Pact with U.S.

Conservative Party leader Pierre Poilievre called for a tariff-free agreement targeting the auto industry between Canada and the United States. The proposal was delivered as part of Poilievre’s public remarks on future North American competitiveness and trade. The announcement signals ongoing political focus on cross-border automotive supply chain and tariff structures.

Sources: www.theglobeandmail.com

Large Battery Deal Between Tesla and LG Energy Solution Confirmed by U.S. Government

The U.S. government confirmed a large battery supply agreement between Tesla and LG Energy Solution. The deal involves battery deployments relevant to North American electric vehicle production. Canadian manufacturing nodes and suppliers may evaluate implications for regional supply chains, as LG operates in Windsor, Ont., and cross-border partnerships are part of the arrangement.

Sources: www.cbc.ca

Rising Fuel Costs Increase Shipping Expenses

Canadian shipping industry participants are experiencing increased costs due to rising fuel prices, according to sector experts cited this week. The development carries potential pass-through pressure for fleet operators and logistics providers connected to the automotive sector, especially those exposed to petroleum-based operating expenses and long-distance distribution networks.

Sources: guelph.ctvnews.ca

Trapped in a Tesla: Electronic Door Systems Scrutinized After Deadly Toronto EV Fire

Press coverage of a recent deadly EV fire in Toronto notes that investigators are focusing on electronic door systems in a Tesla vehicle. Reports from The Star detail the technical examination underway to determine how vehicle exit systems responded during the incident. The case draws attention to electronic safety features in new vehicle designs and may inform future regulatory and safety body assessments.

Sources: www.thestar.com

Suggestion That Canada Ban Chinese EVs at Military Bases

Citing recent international developments, a Canadian expert stated that Canada should consider matching Poland’s ban on Chinese-made electric vehicles at military bases. The comment, made to CTV, relates to national security considerations and the potential for federal action concerning import restrictions. Official federal policy developments have not been announced at this stage.

Sources: www.ctvnews.ca

Provincial Government News

Québec and California Announce Joint Cap-and-Trade Auction for May 2026

Québec’s provincial environment ministry and the California Air Resources Board will hold a joint cap-and-trade emission units auction on May 20, 2026, as per the published auction notice.

Sources: www.quebec.ca

Ontario Convicts Fourteen Under Provincial Tax Statutes

The Ontario Ministry of Finance reported fourteen convictions for offences under the Retail Sales Tax Act, Land Transfer Tax Act, and Employer Health Tax Act, with fines and suspended sentences applied.

Sources: news.ontario.ca

Ontario Advances Highway 11/17 Safety Upgrades and Enforcement

Ontario is increasing enforcement, signage improvements, and infrastructure investments on Highway 11/17, including additional enforcement officers, new inspection stations, and expanded truck parking.

Sources: news.ontario.ca

Ontario Proposes Allowing Single-Occupant Vehicles in HOV Lanes During Off-Peak Hours

A proposed regulatory amendment in Ontario would enable single-occupant vehicles to use High Occupancy Vehicle lanes during off-peak hours, subject to public consultation and final regulatory proclamation.

Sources: news.ontario.ca

Ontario premier criticizes electric vehicle mandates, urges Quebec and B.C. to reconsider policies

Ontario's premier publicly stated that current electric vehicle mandates jeopardize automotive jobs and asked Quebec and British Columbia to withdraw related policies.

Sources: www.ctvnews.ca

What We're Reading This Week

• U.S. government confirms Tesla and LG Energy Solution large battery deal: Report of confirmed battery supply partnership involving North American EV producers.
• Trapped in a Tesla: Why electronic doors are at the centre of the investigation into this deadly Toronto EV fire: The Star examines safety issues arising from EV electronic door systems.
• U.S. regulator closes defect petition covering over 2 million Tesla vehicles: Update on the petition closure related to Tesla vehicles in the U.S. market.
• Consumers set to pay the price as soaring fuel costs hit shipping industry: experts: Reporting on industry reactions to rising fuel prices.
• Ontario premier says electric vehicle mandates putting jobs at risk, urges Quebec, B.C. to scrap policies: Political pushback on zero-emission vehicle mandates.
• Poilievre pitches tariff-free auto industry pact with U.S.: National opposition leader sets sights on U.S.-Canada tariff-free auto trade.

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