Bold new strategy can modernize Canada’s auto sector to match the global shift to vehicle electrification

New Economy Canada welcomes federal commitment to Canadian workers, companies and supply chain

Ottawa, Feb. 05, 2026 (GLOBE NEWSWIRE) -- Amid ongoing trade uncertainty, Canada’s new national automotive strategy can transform and modernize Canada’s auto sector and reinvigorate Canada’s electric vehicle and charging industry.  

Highlights include:

• Investing $3.1 billion to help the auto industry grow and diversify to new markets, protecting Canadian jobs and attracting new investment to help auto manufacturing, battery production and the components supply chain become more competitive.
• New emission standards for cars starting in model year 2027, targeting EVs to reach 75 per cent of sales by 2035 and 90 per cent by 2040.
• Investing $1.5 billion in charging infrastructure across Canada.
• Investing $2.3 billion in consumer incentives that will lower the purchase price of electric vehicles (up to $5,000).

Why this matters:

• The Canadian auto sector supports 552,000 direct and indirect jobs and generates $16.8 billion in GDP.
• Canada’s EV sector currently employs 130,000 workers.
• In 2025, Canada was one of the few countries to see EV sales decline, with BloombergNEF reporting a 35 per cent drop in spending on EVs, even as global EV investment grew 21 per cent.
• Without action, Canada’s workers, consumers and companies risk being left behind by global shifts and trade vulnerabilities. 

In response, Merran Smith, president of New Economy Canada, said: 
“Global automotive trends are clear — electrification or obsolescence. Today’s announcement of a comprehensive manufacturing approach and support for consumer uptake of EVs will drive Canada forward. This strategy can transform and modernize our auto sector and spur the battery supply chain, from mines through manufacturing. It will support workers and companies to update operations and products to help them compete in a market that is electrifying. And it will also grow the Canadian-made EV market by including support to consumers, making them more affordable plus improving EV charging infrastructure.

At the end of the day, we all want the same thing: a strong, modern and future-proofed Canadian auto sector and supply chain that provides good-paying jobs for skilled Canadian workers. This strategy puts us on that path and we urge the government to implement it quickly.”    

New Economy Canada is a non-partisan initiative uniting over 60 companies, labour unions and Indigenous organizations, all committed to accelerating investment in Canada’s clean economy. Our members employ or represent over 410,000 workers and generate annual revenues of over $200 billion CAD. https://neweconomycanada.ca

CONTACT: Rebecca Spring
New Economy Canada
647.338.6274
rebecca.spring@neweconomycanada.ca