Industry and Technology Committee on March 12th, 2026

[The Chair, Liberal, Ben Carr]

Thank you.

Madam O'Rourke, the floor is yours for six minutes.

[Dominique O'Rourke, Liberal, Guelph, ON]

Thank you.

Welcome, everyone. We've all met before in the context of the Liberal auto caucus. I appreciate your attendance here today.

Before I ask a couple of questions, I wanted to frame that I think the market will lead. The industry is actually leading in the EV space. We're seeing this globally and, because we're talking about the Americans, despite the volatility in late 2025, U.S. consumers purchased nearly the same number of EVs in 2025 as in 2024. If the market demand is there, then the production will be there as well.

Just to talk about market demand, this question is for Madam Doran and Monsieur Breton. Budget 2025 introduces the productivity superdeduction that will allow immediate expensing for zero-emissions vehicles, meaning businesses can write off 100% of their vehicle EV fleet in its first year. It also allows for a 100% deduction of capital investment so that auto manufacturers, or any manufacturers in Canada, can write off any sort of retooling in their first year, giving Canada the lowest marginal effective tax rate in the G7.

Coupled with the auto strategy that has $1.5 billion for charging infrastructure to get away from some of that range anxiety that you mentioned, and for rural and northern communities in particular, we have returned to the consumer incentives for EVs and plug-in hybrids, and we have significant support for domestic auto manufacturers.

Given this set of tools the federal government has brought about in the last three months, how do you feel that will impact demand for EVs in Canada and buoy the demand and the automakers?

[Rachel Doran]

I can start.

I think it was telling when you saw the responses to the auto strategy from organizations like ours that are studying the energy transition, as well as a number of automakers and others, and they came out in favour of the auto strategy. I think there were a lot of good wraparound supports there, as you said, both on the supply side and on the demand side.

That said, I will say that I think governments need to have a role, and they are globally having a role. When you look at countries around the world, you see that 37 countries worldwide have established or proposed fuel efficiency or greenhouse gas emissions standards. I would reiterate that I think that's a really critical and important part of the full package of what Canada has undertaken to do.

In direct response to your question, I think we expect to see Canada really shift from where it was last year, which was lagging globally, and to see some real increased momentum this year and some enthusiasm from consumers who were waiting to see if the rebates would be introduced or to see the direction that Canada would be headed in. We still have work ahead to really set—and I think everyone here would agree—a certainty that, within the year, would be very helpful. For us, really, it's that standard that's going to ensure automakers are directing investments and helping EVs be affordable for the Canadians who want them. Those regulatory policies are really a critical secondary component.

[Dominique O'Rourke, Liberal, Guelph, ON]

Mr. Breton, would you like to answer?

[Daniel Breton]

Well, I would say that we really welcomed the policy on the whole. For the first time in a very long time, we have seen different departments working together rather than in silos, and that changes everything.

We have often said to people at the Department of Transport and at Environment, Industry and Natural Resources that we didn't just want regulatory announcements, but rather announcements about infrastructure and the manufacturing sector to provide consistency in policies. That is something that should be done more often, by the way.

The reality is that we sense there is some momentum right now. I can say that because I've had discussions with some members of Electric Mobility Canada, who told me that after the federal government's announcement, it didn't take weeks for orders to start coming in again, but just a few hours, including for charging infrastructure. We can see that it has a real impact.

In terms of EV sales, I'm sure that when you look at the numbers for the second and third quarters of 2026, you'll see that they have started climbing again, especially since the government has announced that EV purchase rebates will decrease over time, from $5,000 to $4,000, $3,000 and then $2,000, to make things predictable for dealers, manufacturers and consumers.

Predictability and affordability are what we need, and that is something that is sorely lacking these days in the rest of the industry and in the rest of society.

[Dominique O'Rourke, Liberal, Guelph, ON]

Perfect, thank you. I will get back to you in a minute.

I just have a quick question for Mr. Reuss or Mr. Bernard.

Is it CADA's position that you would like to see the Government of Canada support temporary foreign workers as mechanics? I understand that there's a lack of qualified technicians across the country for EVs, as well as for IC engines.

[Charles Bernard]

It's a huge issue. The tech shortage in the auto industry, specifically for dealers, is a wall we're facing and our industry is going to hit. Every ambulance, fire truck and car of nurses and politicians requires repairs by technicians. Only in Ontario are we facing a shortage of upwards of 3,000 workers who can fix those cars. During COVID, dealers were recognized as essential services because of the service they provided, mostly on the cars being used on the roads for nurses and doctors, so it's an essential issue.

For the temporary foreign worker program, its existence has not only helped, but been a key part in providing the provinces the ability to go and get the workers they need. What I'd say from a more granular standpoint is there are workers who are already here who just need their paperwork to be done rapidly.

[Dominique O'Rourke, Liberal, Guelph, ON]

I need to stop you, because I want to get back to Madam Doran and Monsieur Breton.

[The Chair, Liberal, Ben Carr]

Madam O'Rourke, I'm sorry, but that is your time. I'd encourage you to talk to your Liberal colleagues, who might be feeling generous about sharing their time later.

Mr. Ste‑Marie, you now have the floor for six minutes.

[Gabriel Ste-Marie, Bloc, Joliette—Manawan, QC]

Thank you, Mr. Chair.

Greetings to the witnesses. Thank you for being here and for what you have said. It is greatly appreciated.

First, I would like to echo what my colleague Ms. O'Rourke said: We sincerely hope that the government will change its position on the renewal of temporary worker permits. We've been waiting for more than two years now for the government to take a pragmatic approach.

Second, I would like to thank my colleague Ms. Dancho for proposing that the committee conduct this important study.

Mr. Breton, I'd like to start by asking you if you have any general comments on what has been discussed since the meeting began. In particular, I'd like you to speak to the harmonization of electric vehicle regulations. Should Quebec follow what Ottawa is doing?

[Daniel Breton]

The answer is no.

I know that the people from the Canadian Automobile Dealers Association and a number of representatives from the traditional automotive industry would like there to be only one regulation for everyone in North America. For many businesses, Canada is not a country, but a market. In their view, respecting what elected officials in a province or country do should be less important than respecting market rules. As a former minister, I find it extremely unacceptable to even suggest something like that.

In Quebec, we account for between 22% and 23% of Canada's population, and we have 46% of electric vehicles. So we're way ahead of the rest of Canada. When people say that instead of having our own zero-emission standard in Quebec, or in British Columbia for that matter, we should just stop being a leader and follow the rest of Canada, which means that we should follow Alberta or Saskatchewan.

I find it incredible that people are saying that elected officials in Quebec should bend to what the federal government is doing. I find that completely unacceptable because there are elected officials in Quebec who pass legislation in Quebec in the interests of Quebeckers, as is the case in British Columbia and in all the provinces.

[Gabriel Ste-Marie, Bloc, Joliette—Manawan, QC]

Some points have been raised and I would like to ask you to respond to them. From what I've heard, the Canadian automotive market is small. Will the major manufacturers comply with the standards that are imposed in Quebec, for example, or in Canada as a whole? What can you say about that?

[Daniel Breton]

Norway has a population of 5.5 million people and 97% of sales are EVs. It doesn't seem to be a problem in Norway, where there are very specific and different regulations.

Looking at the Canadian market, it is now bigger than the California market. More new vehicles are sold in Canada now than in California. So it is completely untrue that Canada is too small a market for manufacturers to adjust to.

I find it quite surprising. On the one hand, people think it's good news that the Canadian government has removed the federal zero-emission standard and adopted the greenhouse gas emissions standard. We said we agreed on that. On the other hand, people are saying that it's as though they're reimposing a zero-emission standard through the back door, which is not true at all, because it's very different.

Those criticisms come from both automakers and people in the opposition, who say that we should be agnostic when it comes to technology. Well, that's what the greenhouse gas emissions standard is. It's exactly that. So we have to be consistent when criticizing Canadian government policies.

I can tell you that we pushed for the implementation of the federal zero-emissions standard. We are nonetheless prepared to live with the greenhouse gas emissions standard. We think it's okay. Among other things, it will help manufacturers like Honda and Toyota, which manufacture hybrid vehicles in Canada. They would not have gotten zero emission credits, but they will get greenhouse gas emission credits. We hear that, we understand that, we're pragmatic. However, we still have to be consistent when criticizing what the government is doing.

[Gabriel Ste-Marie, Bloc, Joliette—Manawan, QC]

I have some more questions for you, Mr. Breton.

Mr. Bernard or Mr. Reuss, do you have anything to add?

[Tim Reuss]

Yes.

I'll answer in English, if you don't mind.

First of all, ideology met market reality in Canada and also in the provinces of Quebec and B.C. By market realities, we mean consumers' demand. It is higher, yes, in the provinces of Quebec and B.C. than federally, but at the end of the day, it's nowhere near what the respective regulations established, be it federally or in Quebec or in B.C.

What we're advocating is not against EVs. It is advocating against mandates and regulations that are not based on market realities. When those percentages cannot be met, you need to adjust. That applies as well for Quebec and B.C., regardless of whether they choose a different method of calculating or how they arrive at their percentages. Even in Quebec, the demand was nowhere near what it needed to be to reach the Quebec targets; therefore, it needs to be adjusted.

As to the regulations, the regulation itself is called EVAS—electric vehicle availability standard. It wasn't called zero-emissions availability standard.

[Gabriel Ste-Marie, Bloc, Joliette—Manawan, QC]

Thank you, Mr. Reuss.

We have 30 seconds left, Mr. Breton. Go ahead.

[Daniel Breton]

What he is saying is not true.

The latest figures on the number of credits granted to automakers over the past four years came out two days ago. What we're seeing is that, with EV sales, automakers have accumulated so many more credits than they needed that they can significantly reduce their sales without facing any penalties. The vast majority of automakers do not have to buy any credits.

If Mr. Reuss looks at the latest figures on Quebec's zero-emission standard, which came out this week, he will realize that what he is saying is not true, unfortunately.

[The Chair, Liberal, Ben Carr]

Thank you, Mr. Ste‑Marie. That's all the time we have.

Mr. Falk, the floor is yours for five minutes.

[Ted Falk, Conservative, Provencher, MB]

Thanks, Mr. Chair.

Thank you to all the witnesses for your presentations.

Mr. Breton, I'll start with you.

Did your organization receive $300,000 of federal funding to develop training curriculum for the ZEVs? Did you receive a federal grant?

[Daniel Breton]

We received funding to train dealers for the sale and maintenance of electric cars two or three years ago.

[Ted Falk, Conservative, Provencher, MB]

Then you have a vested interest in promoting EVs. Is that correct?

[Daniel Breton]

The name of our organization is Electric Mobility Canada. This is the mission of EMC.

[Ted Falk, Conservative, Provencher, MB]

The answer is yes. Thank you.

I'm not against EVs. I think they have their place. However, it seems to me that the whole EV market wouldn't exist without government subsidies. I'm not sure that would apply to the rest of the automobile industry.

[Daniel Breton]

Can I reply to that?

[Ted Falk, Conservative, Provencher, MB]

No. You've answered it for me. Thank you.

Mr. Reuss, I would like you to explain to the committee what the demand for EVs has done in the last year in Canada.