October 04, 2026 to October 10, 2026

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.

📋 In This Week's Newsletter

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

Federal Government News

Government Introduces Bill S-7: Cutting Red Tape for All Canadians Act

On October 7, the Treasury Board of Canada Secretariat introduced Bill S-7, aiming to amend 31 pieces of legislation to reduce regulatory burden. The proposed legislation is designed to remove complexity for businesses without altering core health, safety, or environmental protections. The Act targets outdated or duplicative regulatory frameworks across 11 federal departments, with the intent to accelerate decision-making and support economic competitiveness. The recurring nature of this initiative will enable ongoing review and adjustment of regulatory requirements based on stakeholder feedback. Amendments cover areas relevant to vehicle manufacturing, import, export, and parts, as well as broader industry operations. These measures are expected to lower administrative costs and requirements for producers and importers. The bill continues the government's agenda to revise and modernize oversight of business activities, positioning the Canadian automotive sector for increased operational efficiency.

Sources: www.canada.ca, www.canada.ca

Competition Bureau Supports Bill S-239 at Senate Banking Committee

On October 7, representatives of the Competition Bureau appeared before the Senate Standing Committee on Banking, Commerce and the Economy to discuss Bill S-239. Senior Policy Advisor Matthew Chiasson and Associate Deputy Commissioner Bradley Callaghan articulated the Bureau's support for the bill, which mandates public responses from federal institutions to recommendations stemming from Competition Bureau market studies. The Bureau indicated this change would reinforce transparency and accountability in the government’s handling of pro-competitive reforms. The Bureau also proposed a technical clarification to ensure the bill captures the full scope of recommendations, beyond just those concerning internal trade barriers. If enacted, the bill would require federal and encourage provincial entities to publicly address findings from sectoral studies, affecting how market recommendations—including those impacting automotive supply chains and markets—are assessed and communicated.

Sources: www.canada.ca

Productivity Mega Deduction: Major Change in Business Investment Incentives

On October 9, Minister Joël Lightbound, responsible for Public Works and Procurement, detailed the Productivity Mega Deduction during a visit to Beaupré, Quebec. The deduction, now a permanent feature of Canada’s business tax system, allows for immediate expensing of a wide range of capital investments, including vehicles, equipment, and automotive R&D assets. Immediate expensing eligibility rises to over 65% of business assets, up from roughly 15%. The change is predicted to reduce the marginal effective tax rate on new business investment to 6.4%, less than half the rate in the United States. The deduction applies to businesses of all sizes, providing certainty for long-term capital planning and investment. Automotive manufacturers and suppliers operating in Canada are positioned to benefit from accelerated capital cost recovery for equipment, vehicle fleets, and supporting infrastructure.

Sources: www.canada.ca

StatsCan Releases Report on Economic Contribution of Critical Minerals, 2024

Statistics Canada published data showing critical minerals contributed $26.3 billion to the Canadian economy in 2024, accounting for 0.9% of nominal GDP and 33.4% of the country’s mineral and mining sector. The report addresses Canada's role in the critical mineral supply chain, highlighting potential implications for vehicle manufacturing, battery production, and electric vehicle supply chains. The findings are based on the Natural Resources Satellite Accounts and reflect the ongoing shift toward greater integration between mining, processing, and advanced manufacturing activities closely tied to the automotive sector.

Sources: www.statcan.gc.ca

What We Heard Reports on Forced Labour in Automotive Supply Chains

On October 8, the Government of Canada issued ‘What We Heard’ reports following consultations on measures to strengthen forced labour import bans (Bill C-35) and due diligence requirements for supply chains. Ministers Anita Anand and Patty Hajdu released summaries indicating broad stakeholder support for clearer, risk-based guidance on identifying and preventing forced labour in imports, and for further requirements on businesses to assess risks in their global operations. Stakeholders emphasized the importance of harmonizing Canadian regulations with international partners. Potential civil liability measures and supply chain due diligence regimes remain under discussion as part of ongoing regulatory action. The consultations have direct relevance for vehicle manufacturers, importers, and components suppliers with international supply chains.

Sources: www.canada.ca

StatsCan Publishes Inaugural Sector-based Producer Price Indexes

On October 9, Statistics Canada released its first sector-based Producer Price Indexes, capturing price changes in energy, non-energy, goods, and services sectors. Developed in collaboration with the Bank of Canada, these indexes provide a new resource for tracking input cost trends and inflation dynamics. Automotive firms may utilize this data for analyses related to component costs, price-setting strategies, and the broader impact of commodity price shifts through their supply chains.

Sources: www.statcan.gc.ca

StatsCan: Annual Wholesale Trade—Commodities, 2024

New data from Statistics Canada’s Annual Wholesale Trade report for 2024 details the composition and value of motor vehicles traded through Canadian wholesalers. The dataset covers petroleum products, motor vehicles, and major commodities, supporting market analytics and operational planning for vehicle distributors and parts suppliers operating across provincial and international markets.

Sources: www.statcan.gc.ca

Provincial Government News

Nova Scotia Releases New Traffic Safety Act Regulations

On October 7, Nova Scotia announced new regulations under the Traffic Safety Act, which come into effect October 19. The regulations introduce extended car seat requirements, distracted driving rules, and frameworks for emerging vehicle types, affecting passenger vehicle sales and compliance.

Sources: news.novascotia.ca

Ontario Construction Firms Fined for Carbon Monoxide Exposure

On October 5, Fieldgate Construction Management Inc. and Metro Concrete Works [2016] Inc. were fined a combined $85,000 after workers were exposed to excessive carbon monoxide levels at a Toronto dealership construction site. The Ministry of Labour found testing protocols for air quality had not been adequately followed during garage construction.

Sources: news.ontario.ca

What We're Reading This Week

• Auto industry challenges B.C.’s lowered EV sales target: Industry groups respond to changes in provincial EV targets.
• Tesla drops ‘self-driving’ branding to appease Europe regulators: Tesla adjusts marketing in response to European regulatory pressure.
• N.S. EV levy has some prospective customers weighing options: Nova Scotia’s electric vehicle levy impacts consumer EV purchase decisions.
• N.S. dealership, car owner react to new EV, plug-in hybrid levy: Local dealership and customers assess the implications of new provincial charges.
• Tesla's exclusion from Manitoba EV program 'incredibly unfair,' politically motivated, court hears: Ongoing legal proceedings focus on eligibility for provincial EV incentives.
• Prince Albert seeking solutions to curb vehicle stunting: City considers measures to address dangerous driving incidents.

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