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.

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Dates: 2026-01-26 to 2026-02-01

📋 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 Finance Committee Reviews Budget Implementation Bill (C-15): Transport and Rail Stakeholders: On February 2, the House Finance Committee will review Bill C-15, the budget implementation act, with testimony from Hon. Steven MacKinnon, Minister of Transport; senior staff from Department of Transport; and VIA HFR – VIA TGF Inc. executives from 5:15 p.m. to 7:15 p.m.
• International Trade Committee to Consider UK's Accession to CPTPP: Scheduled for February 3, the International Trade Committee will discuss Bill C-13, addressing the UK's accession to the CPTPP, with witnesses including representatives from Asia Pacific Foundation of Canada, Canadian Meat Council, Canadian Cattle Association, and the British Canadian Chamber of Trade and Commerce.
• Senate National Finance Committee: Subject Matter Study of Budget Implementation Bill: On February 4, the Senate’s National Finance Committee will examine the budget bill (C-15) with testimony from Transport Canada and Competition Bureau officials, including Vincent Robitaille and Josephine Palumbo, from 6:45 p.m. in Room W110.

Federal Government News

Canada and Republic of Korea Sign Memorandum of Understanding on Industrial Collaboration

On January 29, the Honourable Mélanie Joly, Minister of Industry, met with Korea's Presidential Special Envoy for Strategic Economic Cooperation, Hoon-Sik Kang, and Minister Jung-Kwan Kim to sign a memorandum of understanding (MOU) aimed at strengthening bilateral cooperation in strategic sectors, notably automotive and battery manufacturing, critical minerals, and artificial intelligence. The MOU creates the Canada–Korea Industrial Cooperation Committee and establishes a forum to advance future mobility and expand Korean automotive investments in Canada. The government intends to support domestic electric vehicle (EV) manufacturing opportunities and battery supply chain investment, including production, materials processing, and recycling of critical minerals. This partnership is expected to reinforce supply chain resilience and increase cooperation on auto manufacturing and clean energy transition. The agreement aligns with Canada’s objectives for economic diversification and investment attraction, and positions Canada as a strategic supplier for future automotive technologies.

Sources: www.canada.ca

Minister Tim Hodgson Engages India on Critical Minerals for Electric Vehicles

Canada’s Minister of Energy and Natural Resources, Tim Hodgson, held discussions on January 29 with India's Minister of Heavy Industries, H. D. Kumaraswamy, focusing on trade and investment opportunities in energy and mining. The meeting furthered bilateral relations under a new roadmap and explored avenues for supplying critical minerals to India’s electric vehicle manufacturing and renewable energy projects. Canada’s offerings center on securing reliable critical minerals supply chains. Both countries are exploring how Canada’s resources could support India’s EV expansion and energy transition targets.

Sources: www.canada.ca

First Investment Under the Buy Canadian Policy Announced for Toronto Transit

On January 30, the Government of Canada highlighted its first investment under the Buy Canadian Policy, committing over $950 million for 55 new subway trains for Toronto’s Line 2. The Ontario government is matching the federal funding, bringing total investment past $1.9 billion. Under this policy, the trains will encompass 55% Canadian content, directly supporting more than 900 jobs in Ontario and Québec and an additional estimated 1,700 jobs. The procurement is designed to prioritize Canadian manufacturing and supply chains, in partnership with Alstom Canada and the Toronto Transit Commission. The initiative intends to modernize public transit infrastructure with direct implications for automotive suppliers linked to rail components.

Sources: www.canada.ca

CBSA Reports Border Enforcement Activity: Impact on Auto Export and Imports

The Canada Border Services Agency (CBSA), in its annual update coinciding with International Customs Day (January 26), reported a decrease in stolen vehicle exports, seizing 1,590 vehicles in 2025 compared to 2,277 in the prior year, tracking with a nationwide decline in auto theft. CBSA processed nearly five million commercial truck entries and collected $47.5 billion in duties and taxes for fiscal year 2024-2025, nearly $2 billion higher than previous years, utilizing its CARM system to manage over 41 million Commercial Accounting Declarations. Newly recruited officers are expected to enhance enforcement on criminal activity, including vehicle theft and unfair trade practices. CBSA also initiated 33 new dumping and subsidy investigations (20 steel-related), and maintained 181 trade remedy measures, including those impacting automotive supply chains.

Sources: www.canada.ca

Government Support for Workshop Expansion in Quebec: Automotive Component Manufacturing

Atelier d’usinage Côté & Audet in Sorel-Tracy, Quebec received $1 million in federal repayable funding and $1.05 million in provincial loans to expand its machining capacity, targeting pulp and paper, hydroelectric, steel, and automotive sectors. The $4 million project is expected to modernize facilities, improve efficiency, and increase production for Canadian and U.S. markets. The federal contribution is sourced from CED’s Regional Economic Growth through Innovation program and aims to promote regional competitiveness in automotive component manufacturing throughout Quebec.

Sources: www.canada.ca

Wholesale Trade Increases Driven by Motor Vehicle and Parts Sector

Statistics Canada’s advance estimate for December 2025 indicated wholesale sales rising by 2.1%, with motor vehicles, parts, and accessories as a key contributor. Other petroleum categories were excluded in data, but higher sales volumes in the automotive-related subsector signal steady demand from downstream dealers and rental fleets, supporting continued activity in vehicle distribution.

Sources: www.statcan.gc.ca

Environmental Protection Spending by Canadian Businesses Up Sharply

Canadian firms spent $32.2 billion on environmental activities in 2023, an increase of 17.4% from the prior year. Approximately 63% of this expenditure went towards clean energy production, procurement of biomaterials, and energy management—areas with direct relevance for alternative fuel vehicle manufacturing, supply chain compliance, and EV component production.

Sources: www.statcan.gc.ca

Provincial Government News

Quebec Adjusts Tax Measures Related to Automobile Benefits and Expenses

On January 28, the Government of Quebec announced new rates and ceilings for the deductibility of automobile expenses and calculation of taxable benefits for vehicle use in 2026. Full details are outlined in Information Bulletin 2026-1.

Sources: www.quebec.ca

Alberta Establishes New Provincewide Towing Rules

Effective April 1, 2026, new regulations will require towing operators to obtain prior consent and provide written estimates for services. Violators face penalties reaching $300,000 or two years’ imprisonment. Consumer access and transparency measures apply to towing and storage fees.

Sources: www.alberta.ca

Ontario Company and Director Penalized for Unapproved Waste Site Handling Vehicles and Materials

2596785 Ontario Ltd. and its director were fined a combined $30,000 for operating a waste management site without approval, involving the deposit and processing of end-of-life vehicles, tires, and other automotive materials from April to June 2022.

Sources: news.ontario.ca

What We're Reading This Week

• Put the market in the driver’s seat for EVs: Editorial examining market-driven approaches to electric vehicle adoption amid China-Canada trade developments.
• Consumer Matters: What to consider before buying a Chinese EV: News segment on consumer risks and considerations when purchasing Chinese-made electric vehicles in Canada.
• New federal auto task force will include Ontario, industry minister says: Industry minister confirms Ontario’s role in Ottawa’s new federal auto sector task force.
• Carney's China EV deal cheered by California's clean air cop: Article reporting on Mark Carney's EV supply agreement with China and its reception among US clean air regulators.
• Canada’s auto industry has a chance to reset with EV market, expert says: Expert commentary on shifts in Canada’s auto sector tied to emerging EV market trends.
• Five lower-priced EVs we could possibly get with the new China deal: Coverage of potential new electric vehicle models for Canada under recent trade developments.

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