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.

Dates: 2026-01-19 to 2026-01-25

📋 In This Week's Newsletter

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

This Week's Parliamentary Calendar

• Industry and Technology Committee: Review of Budget 2025 Implementation Act, No. 1: Scheduled for January 26, 3:30–5:30 p.m., the committee will examine subject matter of Bill C-15 relevant to Budget 2025, featuring testimony from the Offices of the Information and Privacy Commissioners of Canada, including Philippe Dufresne and Marc Chénier.
• Environment and Sustainable Development Committee: Committee Business Meeting: Set for January 27, 3:30–5:30 p.m., the committee will convene for business discussions. Meeting location is Wellington Building Room 410.
• Transport, Infrastructure and Communities Committee: Changing Landscape of Truck Drivers (Part 1): On January 26, 11:00 a.m. to 1:00 p.m., the committee will hear witnesses including truck drivers and the Caledon Community Road Safety Advocacy Group regarding sector changes, workforce issues, and road safety.
• Transport, Infrastructure and Communities Committee: Changing Landscape of Truck Drivers (Part 2): On January 28, 4:30–6:30 p.m., testimony will be provided by representatives from 6S Trinity Transport Ltd., J. & R. Hall Transport Inc., Ludwig Transport Limited, and the Association des professionnels du dépannage du Québec on industry employment and operational trends.

Federal Government News

Competition Bureau Canada Publishes 'What We Heard' Report on Algorithmic Pricing

On January 22, the Competition Bureau Canada released a consultation summary outlining public and stakeholder feedback about algorithmic pricing and competition. The report details four main themes: dynamic pricing enhances market efficiency, but algorithmic approaches may result in anticompetitive behaviour and reduced data transparency, potentially impacting consumers and competition. Respondents spanned domestic and international stakeholders, including industry associations and consumer groups. The Bureau collected more than 100 submissions, reflecting a broad perspective on the regulatory response to algorithm-driven pricing practices in sectors such as ridesharing. Key concerns included risks associated with reduced transparency and calls for regulation that prevents anticompetitive conduct while supporting innovation in Canadian markets.

Sources: www.canada.ca

Federal Government Announces First 'Buy Canadian' Transit Investment

The Government of Canada, through Housing, Infrastructure and Communities Canada, marked a significant investment in transit infrastructure aligned with the Buy Canadian Policy. The initiative will provide over $950 million for manufacturing 55 new subway trains for Toronto’s Line 2, with production allocated to Alstom’s Quebec plants. The subway trains will have a 55% Canadian content requirement, supporting over 900 direct and 1,700 indirect jobs nationwide. The Buy Canadian Policy is intended to prioritize domestic materials and manufacturing, aiming to enhance the Canadian economy and consolidate Quebec’s position in the national transit supply chain. Minister Joël Lightbound and Alstom representatives discussed the employment and broader industry benefits in La Pocatière, Quebec.

Sources: www.canada.ca

Statistics Canada Releases Motor Vehicle Sales Data for November 2025

On January 19, Statistics Canada published figures for new motor vehicle sales in November 2025. Total sales reached 150,832 units, a 6.6% decrease from the same month in 2024. Sales value dropped 9.4% year-over-year. Notably, passenger car sales declined by 22.2%, while new truck sales saw a more modest decrease of 4.5%. These trends indicate continued variation in consumer demand between vehicle segments.

Sources: www.statcan.gc.ca

Advance Estimate Shows Manufacturing Sales Rose in December, Led by Motor Vehicles

Statistics Canada’s January 23 advance indicator for December 2025 reports a 0.5% increase in total manufacturing sales. The motor vehicle industry group contributed significantly to the gain, accompanied by the food subsector. This preliminary estimate informs industry stakeholders of ongoing shifts in Canadian manufacturing output heading into 2026.

Sources: www.statcan.gc.ca

Industrial Product and Raw Materials Price Indexes: December 2025

Statistics Canada released new data on price indexes for December, reporting a 0.6% month-over-month decrease in the Industrial Product Price Index, but a 4.9% annual increase. The Raw Materials Price Index, conversely, grew 0.5% in December and 6.4% year-over-year. Fluctuations in these indexes have direct relevance for cost management in vehicle and parts manufacturing.

Sources: www.statcan.gc.ca

Refined Petroleum Product Data Now Available for December 2025

Industry participants can now access December data on refined petroleum products via Statistics Canada as of January 22. The release includes updated figures on production and inventories relevant to automotive manufacturing and supply chains.

Sources: www.statcan.gc.ca

Provincial Government News

Ontario Towing Company Director Fined for Environmental Protection Act Violation

Jegatheeswaran Ramanathan, director of GTA AAA Towing, was fined $5,000 for providing misleading information regarding the cleanup of a diesel spill from a transport truck accident near Clarington. The conviction followed a third-party report confirming improper remediation.

Sources: news.ontario.ca

British Columbia Supports Clean-Tech Trucking, Port, and Hydrogen Projects

Nuport Robotics and Hydra Energy, among others, launched emission-reducing technologies at the Port of Prince Rupert with $1.7 million in provincial support, including new data acquisition for trucks and testing of zero-emission uncrewed vessels.

Sources: news.gov.bc.ca

Clean-Technology Innovation Projects Advance at Vancouver International Airport

B.C.'s Integrated Marketplace provides funding for projects featuring tap-and-go EV charging, mobile battery storage, and green belt-loader technology for airport fleet electrification. Island Auto and Enedym collaborate on belt loader systems.

Sources: news.gov.bc.ca

Ontario Invests $47 Million in Applied Research and Advanced Manufacturing

Ontario announced $47 million for 195 research projects, including funding for advanced manufacturing centres like Georgian College’s Industrial Simulation and Prototyping facility, aimed at creating 460 jobs and supporting regional innovation.

Sources: news.ontario.ca

Québec Launches 2025-2031 Strategy for Critical and Strategic Minerals

Québec introduced a new strategy with an $88.1 million budget to boost development and processing of critical minerals, focusing on local transformation, enhanced infrastructure, and value creation for regions engaged in extraction and manufacturing.

Sources: www.quebec.ca

Michigan Initiates Legal Action Alleging Oil Company Collusion to Suppress Electric Vehicle Development

Michigan’s lawsuit claims several oil companies conspired to obstruct the growth and adoption of electric vehicles. The allegations focus on coordinated efforts to prevent EV market expansion, potentially affecting supply chain dynamics and cross-border industry relations. The case, filed on January 23, may be watched closely by automotive firms operating in both Canada and the US, given its implications on competition and technological innovation within North American vehicle markets.

Sources: www.theglobeandmail.com

Government Consultations

Consultation: Driving Effective Carbon Markets in Canada

Environment and Climate Change Canada continues its consultation on strengthening carbon market benchmarks, accepting input until January 30. The process seeks feedback on maintaining benchmark flexibility for provinces and territories.

Sources: www.canada.ca

Consulting Canadians on Free Trade Agreement With UAE

Global Affairs Canada’s consultation period on a possible free trade agreement with the United Arab Emirates remains open through January 27, gathering perspectives from stakeholders including automotive sector participants.

Sources: international.canada.ca

Consulting Canadians on Comprehensive Economic Partnership Agreement With India

Global Affairs Canada invites comments on a prospective trade agreement with India, aiming to inform Canada’s negotiating position regarding automotive and broader industrial interests.

Sources: international.canada.ca

Consulting Canadians on Free Trade Agreement With Mercosur

Stakeholder input on proposed FTA negotiations between Canada and Mercosur countries is open, with potential impacts for vehicle exporters and related industries.

Sources: international.canada.ca

What We're Reading This Week

• Canada’s auto sector is in serious trouble. Are Chinese EVs the solution?: Discussion on competitive pressures and import trends.
• Carney’s China deal isn’t a sign of confidence in Canada’s auto sector: Analysis of Canada-China auto and EV tariff policies.
• Time for North American auto industry to meet the Chinese challenge: Opinion piece urging strategic responses to Chinese EV manufacturing.
• Auto sector urges ‘Team Canada’ approach after China EV trade deal; ‘We are in the fight of our lives’: Industry commentary on federal trade strategies.
• Opinion: What to know about the Canada-China tariff deal on EVs and canola: Overview of recent tariff developments affecting the auto sector.
• Is Carney’s cars-for-canola surrender with China another nail in Canada's automaking coffin?: Critical perspectives on trade agreements and industry impacts.
• $233B Engineering Supercycle: Bridging the Autonomous Action Gap in 2026: Coverage on advanced engineering cycles and autonomous vehicle developments.
• Keeping your vehicle winter ready: Consumer-focused advice on vehicle maintenance in winter.
• Michigan sues oil companies, saying they colluded to prevent EV development: Details on the Michigan lawsuit impacting EV markets.
• $233B Engineering Supercycle: Bridging the Autonomous Action Gap in 2026: Update on industry-wide autonomous vehicle engineering advancements.

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