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: 2026-02-02 to 2026-02-08

📋 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 Industry and Technology Committee to Study Auto-Relevant Budget Measures: On February 9, the House Industry and Technology Committee will review Clauses 389–398 (Division 23), Clauses 589–591 (Division 39), and Clauses 597–598 (Division 43) of Bill C-15, including industry-related budget measures. Minister Mélanie Joly, as well as Charles Vincent and Samir Chhabra from the Department of Industry, are scheduled as witnesses.
• Senate Transport and Communications Committee to Review Budget Implementation Bill: On February 10, the Senate Standing Committee on Transport and Communications will meet in camera to examine Divisions 1, 2, 24, 28, and 29 of Part 5 of Bill C-15, related to budget implementation, in Ottawa.
• Senate Banking, Commerce and Economy Committee to Examine Budget and Weights and Measures Bill: On February 11, the Senate Committee on Banking, Commerce and the Economy will convene to consider Divisions 4, 9, 10, 11, 12, 13, 14, 15, 16, 17, 22, 23, 37, 39, 43, and 45 of Part 5 of Bill C-15 as well as Bill S-3, with witnesses including Lisa Stilborn and Devin O'Grady from the Canadian Fuels Association and Christopher Holz from the Sub-metering Council of Ontario.

Federal Government News

Federal Government Launches New Automotive Strategy, Rescinds EV Sales Mandate

The federal government unveiled a comprehensive automotive strategy, withdrawing the Electric Vehicle Availability Standard and instead setting more rigorous greenhouse gas emission standards for vehicle model years 2027–32. Announced by Prime Minister Mark Carney and Minister Mélanie Joly, the plan sets a trajectory for 75% electric vehicle (EV) sales by 2035 and 90% by 2040, with these new standards intended to facilitate a transition while allowing manufacturers to pursue flexible pathways. The EV Affordability Program, allocating $2.3 billion over five years, will provide individuals and businesses incentives of up to $5,000 for battery electric/fuel cell vehicles and up to $2,500 for plug-in hybrids, with a $50,000 price cap for most imports except Canadian-made units. The strategy channels $3 billion from the Strategic Response Fund and $100 million from the Regional Tariff Response Initiative to support industry adaptation, export diversification, and advanced manufacturing, while extending reduced corporate tax rates and a Productivity Super-Deduction for zero-emission technology producers. Measures also address expanded charging infrastructure ($1.5 billion), retention and retraining supports for up to 66,000 workers, and maintain counter-tariffs on US auto imports to shield domestic players. New trade efforts include an MOU with Korea and an agreement with China for controlled EV imports and joint ventures. The policy aims to diversify export markets and fortify Canada's position in critical minerals and next-generation vehicle manufacturing.

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

Senate Committee Reviews Weights and Measures Modernization Bill S-3

The Standing Senate Committee on Banking, Commerce and the Economy held a session on Bill S-3, which proposes significant updates to the Weights and Measures Act and the Electricity and Gas Inspection Act. Senator Toni Varone, the bill’s sponsor, stated that the intent is to modernize Canada’s trade measurement system, mitigate regulatory burdens, and enable innovation, including device certification via sampling and virtual inspections. Witnesses from Measurement Canada discussed the need for timely standard updates for electric vehicle charging and responded to queries about extending regulatory review cycles from five to ten years, outlining that the plan includes annual reports for transparency and the flexibility to update legal units of measurement through Orders in Council. The committee discussed enforcement policies, cybersecurity for digital devices, and varying readiness among electricity distributors. Industry stakeholders, including the Canadian Gas Association and Electricity Canada, described concerns about inspection intervals and the complexity faced by manufacturers aligning to multiple international standards.

Sources: senparlvu.parl.gc.ca

Federal Commitment to Strengthen Domestic Auto Manufacturing

Minister Maninder Sidhu announced approval of up to $700,000 for A. Berger Precision Ltd. under the Regional Tariff Response Initiative to assist in capacity expansion and export development. This action is part of the broader strategy, which also maintains counter-tariffs on auto imports from the United States and formalizes industrial partnerships with Korea and China. Minister Sidhu stated in Brampton that these moves are designed to reduce reliance on the US market and position Canadian manufacturers to better compete globally.

Sources: www.canada.ca

Technical Briefing and Media Events Accompany Auto Strategy Rollout

Senior officials from Innovation, Science and Economic Development Canada, Transport Canada, and Environment and Climate Change Canada provided technical briefings detailing the new automotive strategy and policy mechanisms. Media were briefed both in Ottawa and Guelph, with Minister Mélanie Joly and Minister Maninder Sidhu holding further events to address industry and public questions on operational aspects of the new plan.

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

Support Announced for Southern Ontario Automotive Manufacturing

Minister Evan Solomon is scheduled for an upcoming announcement in Bradford regarding support measures for automotive manufacturers in southern Ontario, delivered by the Federal Economic Development Agency for Southern Ontario. Details on program delivery and funding amounts are expected to be released during the event.

Sources: www.canada.ca

Federal Funds to Help SMEs Navigate CUSMA Compliance

The federal government is providing $500,000 to the Toronto Region Board of Trade for targeted programming to support Ontario SMEs in meeting Canada–United States–Mexico Agreement (CUSMA) trade requirements. The program, delivered via the World Trade Centre Toronto, will offer expert workshops and individualized coaching to facilitate compliance amid growing supply chain complexity.

Sources: www.canada.ca

2026 Spectrum Auction Awards Nearly All Available Licences

Minister Mélanie Joly announced that 196 out of 207 spectrum licences up for auction were awarded to three Canadian telecoms. The residual auction model placed unsold or returned licences on the market, achieving close to 99% allocation. Deployment requirements are attached to these licences to support timely rollout of telecom infrastructure and potentially bolster advanced automotive communications.

Sources: www.canada.ca

Competition Bureau Study Finds Major Economic Gains from Regulatory Reform

A peer-reviewed study commissioned by the Competition Bureau found that reducing regulatory barriers in sectors such as energy and transportation could boost Canada’s GDP by 6.5 to 10% over the long term. The analysis, published in the International Productivity Monitor, suggests gains could be increased further by addressing internal trade barriers, worker mobility, and foreign investment flows. The findings indicate that regulatory changes could offer significant productivity benefits for Canadian industries, including automotive.

Sources: www.canada.ca

Canadian System of Environmental–Economic Accounts: New Data on Energy/Emissions Intensity

Statistics Canada released updated measures for the Canadian System of Environmental–Economic Accounts, showing that in 2022, the average national energy use intensity was 3.75 gigajoules per thousand dollars of output, and average greenhouse gas emissions intensity was 0.26 tonnes of CO2 equivalents per thousand dollars.

Sources: www.statcan.gc.ca

Senate Finance Committee Examines High-Speed Rail Project and Competition Act Amendments

The Senate National Finance Committee reviewed Bill C-15, which includes provisions for the High-Speed Rail (HSR) project between Quebec City and Toronto. The project, backed by a $90 billion budget, intends to accelerate intercity connectivity, reduce emissions, and create jobs. The segment from Ottawa to Montreal will launch first. The committee also assessed proposed Competition Act amendments to anti-greenwashing provisions, eliminating the requirement for internationally recognized methodologies and enabling third-party complaints. Businesses indicated support, though concerns linger over vagueness in substantiation criteria.

Sources: senparlvu.parl.gc.ca

Provincial Government News

Alberta Premier Welcomes Ottawa’s Termination of EV Mandate

Alberta Premier Danielle Smith issued a statement supporting the federal government’s cancellation of the EV sales mandate, stating that the policy was impractical given Alberta’s registration numbers, with only 19,863 EVs purchased out of 222,000 vehicles last year.

Sources: www.alberta.ca

New Brunswick Reports Progress on Environmental Targets

The Government of New Brunswick released new data indicating that it surpassed its greenhouse gas reduction target by 18% per million GDP and exceeded energy efficiency savings targets for homes and businesses.

Sources: www2.gnb.ca

Alberta Issues Advisory for Super-Heavy Load Transport Impacting Highways

A super-heavy pressure vessel, weighing 485,263 kilograms, is scheduled to move from Edmonton to Fort Saskatchewan on February 8, with a route that will affect traffic across multiple highways and require road closures.

Sources: www.alberta.ca

What We're Reading This Week

• Goodbye EV sales mandate, hello purchase rebates. Carney shakes up Canada's auto industry: CBC coverage on Canada’s auto sector policy reversal.
• Opinion: Good EV plan, Canada. The risk now lies in execution: The Globe and Mail commentary on the new EV strategy.
• Federal government set to scrap zero-emissions vehicle mandate: Early report on planned transition from mandate to incentives.
• Carney reinstates EV buyer incentives, scraps sales mandate: Story on the financial incentives for EV buyers.
• Carney scraps EV mandate, vows $2.3B in consumer rebates in new auto plan: Details of new auto strategy funding.
• Carney government to replace EV sales targets with rebates, incentives and new fuel efficiency standards: Report on government’s shift away from fixed sales targets.
• Canada to scrap EV rules in win for automakers: Coverage from Financial Post on reaction from the auto industry.
• Canada’s EV rebates returning, sales mandate ending: CTV summary of national automotive strategy.
• Carney announces return of EV rebates. Here are the details: Further details on incentive structure.
• Canada’s car capital gives thumbs-up to EV rebate — and scrapping mandate: Community reaction to EV mandate cancellation.

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