Mr. Speaker, before I begin, I would like to join others in expressing my condolences on the profound tragedies at Tumbler Ridge and Kitigan Zibi. Having lost people close to me, I know it is really challenging, when one's world has been shattered, to feel like the rest of the world is moving along. I just want those communities to know that we grieve with them, and they are in our hearts even though we are continuing the work of this place.
I am very proud to represent the riding of Guelph, where we see leadership in the auto sector every single day, in parts manufacturing. Guelph is home to Linamar, Denso, Polycon, CPK and many others. Many people in Guelph work at Toyota in Cambridge, and that plant has received more quality awards than any other plant on the planet.
In our region, we know auto manufacturing. That is why I chair the auto caucus. I understand in my bones how important the sector, with 500,000 jobs, is to Canada and to our communities. In Guelph alone, there are 12,000 jobs in the auto sector.
I care about the auto workers and the health of the sector. This government cares. That is why we announced a comprehensive auto strategy last week. Through that strategy, we will accelerate investment in Canada's auto manufacturing sector, with $3 billion from the strategic response fund and up to $100 million from the regional tariff response initiative to help the auto industry adapt, grow and diversify to new markets.
I have been promoting this in my riding, and I hope all members of the House are reaching out to potentially tariff-affected businesses and letting them know what supports exist, even if they voted against those supports in budget 2025.
The auto strategy will harness the productivity superdeduction and reduced corporate tax rates for zero-emissions technology manufacturers, to encourage investment in clean technology and EVs. The productivity superdeduction is another measure to enable all manufacturers to invest in capital or business that can be written off in the first year, and was also opposed in the budget by members opposite.
The auto strategy will rationalize emissions reduction policies to focus on outcomes. This means that stronger greenhouse gas emission standards put Canada on a path to achieve a goal of 75% of EV sales by 2035 and 90% of EV sales by 2040 to reduce our carbon footprint and secure Canada's global leadership in clean energy.
I am really thrilled to be speaking at the same time as my hon. colleague, the member for Halifax. I attended the environment caucus presentations from Electric Mobility Canada, and environment caucus members joined in auto caucus meetings. We really understand that there is an exciting intersection of auto and electrification that is positive, and that is where the world is going.
The more stringent emissions standards will allow manufacturers to use a range of technologies to meet the standards and respond to consumer preferences in the near term while driving adoption over time. This is what the manufacturers have been asking for as they innovate in their technology and as they move towards their goals of net zero.
Earlier today, some members in this House talked about automakers as laggards, but I want to applaud the industry's leadership in regard to electrification. Toyota is committed to becoming carbon-neutral across the vehicle life cycle, in its manufacturing and in its vehicles, by 2050. Consumers are with them. Toyota Canada's Q3 results show electrified vehicles representing 49.4% of overall sales. The demand and the expertise are there. Honda also has a net-zero initiative for 2050.
This trend is global. Electric car sales exceeded $17 million globally in 2024, reaching a sales share of more than 20%. Electric car sales in 2025 were expected to exceed $20 million worldwide and to represent more than one-quarter of cars sold across the globe.
In Canada, we do not have the 2025 data yet, but in 2024, EVs were responsible for 60% of the net increase in total vehicle registrations. They accounted for one in seven new vehicles sold that year, but depending on the region and the model, that number was as high as one in three or one in four new vehicles sold in 2024. There is consumer demand. What happened?
When the incentives were paused, that demand dropped off as consumers waited to see if they would come back. Therefore, we are going to strengthen domestic demand by making EVs more affordable and the infrastructure more reliable for Canadians. That is why we have launched a five-year EV affordability program, to lower the cost of EVs for Canadians and to create a stronger domestic consumer market. The plan was always to support EV adoption over 10 years. We are resuming that plan because, frankly, it worked.
This is a piece that has been missing as well. We are going to offer individuals and business owners purchase or lease incentives of up to $5,000 for battery-electric and fuel-cell EVs and up to $2,500 for plug-in hybrids with a final transaction value of up to $50,000 on cars made by countries that Canada has a free trade agreement with. To support the Canadian automotive industry, this $50,000 cap, as we know, will not apply to Canadian-made EVs and plug-in hybrids.
Let us be very clear. The rebates for the purchase of an electric vehicle or a plug-in hybrid go into the pockets of individual Canadians or companies that purchase them. That is where those incentives go. Even if the vehicle comes from the U.S., it is subject to countertariffs, and it contains parts from Canada made by Canadian workers, which means it is part of our Canadian auto sector. Let us not allow the Conservatives to confuse people on this point. The Government of Canada, the Prime Minister, the Minister of Industry and cabinet members have listened to Canadians. Canadians are embracing the EV rebates.
Canadians also want to address the issue of range anxiety. They want a better national EV charging network, so we are investing, as my colleague said, $1.5 billion to support the charging infrastructure.
We are establishing a comprehensive trade regime that strengthens the competitiveness of the auto sector by strengthening the remissions framework to reward companies that produce and invest in Canada, which we should all be able to agree on. We are attracting new investment to Canada, which should also be an easy point of agreement, and we are maintaining our countertariffs on auto imports from the United States to ensure a level playing field for Canadian automotive manufacturers in the domestic market.
Finally, the automotive strategy protects Canadian auto workers and businesses from immediate pressures while helping them bridge to the future, if required, through support and re-skilling. As that happens, other players are coming into the market, like EV battery plants in St. Thomas and Windsor. This strategy has been supported by the Canadian Vehicle Manufacturers' Association. It welcomes the government's automotive strategy, stating:
Funding to support renewed purchase incentives and a robust charging infrastructure strategy will help continue to drive EV adoption, and CVMA members are well-positioned to support the shift to electrification through diverse product offerings.
The Global Automakers of Canada stated:
We are pleased that the government has provided greater clarity on issues such as the Electric Vehicle Accessibility Standard, the reinstatement of EV incentives, and a commitment to aggressively build out the charging infrastructure.
The members of the Ontario Auto Mayors caucus are thrilled, and the next one is my favourite. The Canadian Auto Dealer president and CEO stated:
The expanded and adjusted support measures aimed at maintaining Canada’s vital automotive manufacturing sector are essential as we enter the critical phase of the CUSMA renegotiation with the U.S. Dealers across Canada particularly applaud the government for ending the EV mandate and choosing a better path forward for EV adoption that is more in line with diverse technology, charging infrastructure and overall consumer demand.
Even Unifor representatives are saying that they are ecstatic and believe this is very helpful for the sector.
The Conservative motion before the House today is not a strategy. It is not sound policy. It is not even accurate. We need clarity, not confusion. EV incentives go to Canadian households and Canadian businesses. We have an integrated auto manufacturing sector. All vehicles assembled in North America have parts from Canada. The strategic response fund is helpful.
I do not support this opposition motion, because there is no substance. I support Canada's auto sector strategy. I support solutions that work. I stand with the sector and with our auto workers.