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: 2026-02-15 to 2026-02-21

📋 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

• House OGGO to review Budget Implementation Act provisions with Canada Post, Treasury Board, and TSB: The House Government Operations & Estimates Committee will meet February 24 at 3:30 p.m. to review Bill C-15 (Budget Implementation Act) provisions with witnesses from Canada Post and the Treasury Board; the Transportation Safety Board will also brief the committee on its mandate.
• ENVI to consider Canada’s 2030 Emissions Reduction Plan draft report: The Environment and Sustainable Development Committee meets February 24, 3:30-5:30 p.m., to discuss the draft report on Canada’s 2030 Emissions Reduction Plan and plan future business.
• International Trade Committee addresses Canada’s rules-based trade and investment system: The International Trade Committee will hold a meeting on February 24, 11:00 a.m.-1:00 p.m., to consider its draft report on Canada’s international trade engagement.
• Senate Banking Committee studies Bill S-3 tied to Weights and Measures Acts: The Senate Committee on Banking, Commerce and the Economy meets February 25 at 4:15 p.m. to hear from Canadian Fuels Association and the Sub-metering Council of Ontario on Bill S-3, which amends the Weights and Measures and related inspection legislation.
• Senate Transport and Communications Committee reviews Canada’s critical transport infrastructure: A Senate committee session is scheduled for February 24 at 9:00 a.m. with witnesses from Transport Canada, Public Safety, and Environment Canada to discuss critical transport infrastructure and related safety and adaptation issues.

Federal Government News

Motor vehicle manufacturing drives December manufacturing sales increase

Statistics Canada reported on February 16 that national manufacturing sales rose 0.6% in December 2025, with motor vehicles and food products accounting for the majority of the overall gain. The latest Monthly Survey of Manufacturing indicated that motor vehicle production was a primary contributor, while sales in the petroleum and coal products subsector declined. Full details on manufacturing subsectors are available via the Statistics Canada release.

Sources: www.statcan.gc.ca

Retail sales for motor vehicle and parts dealers decline in December

According to data released by Statistics Canada on February 20, retail sales fell 0.4% to $70.0 billion in December 2025. The decrease was driven mainly by lower sales at motor vehicle and parts dealers, one of three subsectors showing declines. The report notes that other retail groups experienced increases, but overall automotive sector receipts lagged during the month.

Sources: www.statcan.gc.ca

Industrial Product and Raw Material Price Indexes jump in January

Statistics Canada’s February 20 release highlights that the Industrial Product Price Index advanced 2.7% month over month in January 2026, with a 5.4% increase year over year. The Raw Materials Price Index saw even stronger growth, climbing 7.7% on the month and 8.0% compared to January 2025. Details of underlying sector price movements are available in the official publication.

Sources: www.statcan.gc.ca

New EV rebate program begins; outstanding dealer reimbursements under older program remain

A new electric vehicle rebate program took effect in February, as reported on February 16, though several automobile dealers are still pursuing outstanding reimbursements for EVs sold under the previous incentive framework. Dealers state that administrative backlogs have delayed payments for sales completed before the most recent program overhaul. The government is processing applications for the updated program, but the status of legacy reimbursements remains unsettled.

Sources: globalnews.ca

Car dealers continue to pursue reimbursement for previous EV sales

As of February 16, Canadian auto retailers have reiterated concerns regarding reimbursement for electric vehicles sold under prior iterations of federal and provincial rebate programs. The situation affects cash flow for some dealerships, who have not yet been reimbursed for qualifying EV sales conducted before recent incentive program changes.

Sources: www.ctvnews.ca

Canadian startup introduces technology to improve EV winter range

A Canadian startup has developed a new defrosting technology designed to improve electric vehicle driving range during winter months, according to reports from February 19. The company’s approach seeks to reduce energy consumption attributed to windshield defrosting and could enable more consistent real-world EV performance in colder climates.

Sources: www.theglobeandmail.com

Provincial Government News

Québec and California hold 46th joint auction of greenhouse gas emission units

Québec’s environment ministry and the California Air Resources Board held a joint auction for GHG emission units on February 18, with 54.9 million current and 6.5 million advance units offered; results will be published February 25.

Sources: www.quebec.ca

B.C. introduces Trade Recognition Act to remove interprovincial barriers

British Columbia announced new legislation on February 18 to make mutual recognition of goods and services from other provinces permanent, aiming to facilitate easier interprovincial commerce across the country.

Sources: news.gov.bc.ca

Québec updates road works technical publications

The Québec Ministry of Transport and Sustainable Mobility released new documents in the 'Road Works' collection, covering standards, guides, and manuals for road and engineering structure projects.

Sources: www.quebec.ca

Government Consultations

Federal government launches horizontal red tape reviews

The Red Tape Reduction Office is carrying out horizontal reviews through February 28, aiming to examine regulatory efficiency, product market access, and international trade at the federal level.

Sources: www.canada.ca

What We're Reading This Week

• Tesla cancelled the car of the century: Tesla’s discontinuation of a major anticipated EV model receives analysis.
• Electric Vehicle Sales Boom as Ethiopia Bans Fossil-Fuel Car Imports: Reports cover growth in EV sales as Ethiopia implements a ban on gasoline and diesel car imports.

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