CANADA'S AUTOMOTIVE STRATEGY
Montréal, February 5, 2026 - Propulsion Québec, the zero-emission transportation industry cluster, takes note of the newCanadian Automotive Strategy presented this morning by Prime Minister Carney. This strategy marks an important step in creating the right conditions to accelerate the transition to zero-emission transportation in Canada. In particular, Propulsion Québec welcomes the announcement of a $1.5 billion National Charging Infrastructure Strategy, the return of incentives for the purchase of zero-emission vehicles, and increased support for the transformation of the automotive industry through the Strategic Response Fund.
Propulsion Québec recognizes that a standard based on greenhouse gas emissions can contribute to achieving the objectives, but it will have to be sufficiently binding to encourage manufacturers to increase the supply and affordability of zero-emission vehicles in Canada. Aiming for a 75% adoption rate by 2035 remains relatively ambitious, but must be implemented quickly, tangibly and without the possibility of circumvention.
Over the past few months, Propulsion Québec has actively participated in the consultations, recommending that the ambitious targets be maintained, that the deployment of charging infrastructures be accelerated across the country, that incentive programs be urgently relaunched, and that support for the automotive industry be strengthened to ensure its industrial transformation.
"It is imperative that the Strategic Response Fund be used to support and encourage automotive manufacturers in their transition, while promoting the local production of zero-emission vehicles, the integration of local suppliers, and the development of a battery industry and critical and strategic minerals in Canada," says Alexis Laprés-Paradis, CEO of Propulsion Québec.
Out of uncertainty
At a time when the zero-emission transport sector has been going through a period of turbulence for over a year, Propulsion Québec reiterates that electrification remains an essential lever for economic growth and the fight against climate change. In this context, we welcome the reintroduction of purchase incentives on February 16 to restore market confidence, as well as the adoption of a new regulatory framework applicable from the 2027 model year. Rapid implementation will give the industry the predictability it needs to plan its investments and production capacities, while maintaining support for the deployment of charging infrastructures.
A robust and ambitious regulatory framework
Standards based on greenhouse gas emissions are already in force in Europe and have demonstrated their ability to support the adoption of zero-emission vehicles, provided they are sufficiently ambitious. The next Canadian regulatory framework must send a clear, predictable and structuring signal to the entire value chain. It must encourage automakers to prioritize the Canadian market, stimulate investment and promote the deployment of the infrastructure required for the transition, drawing on international best practices.
The transportation sector remains one of Canada's biggest emitters of greenhouse gases, accounting for almost 23% of national emissions. Electrifying transportation is therefore a strategic pillar for building a more sustainable economy, creating quality jobs, strengthening the country's energy independence and reducing emissions, while generating direct benefits for consumers.
"Globally, one in four new vehicles is now electric, and major economies are making rapid progress towards electrification thanks to ambitious regulatory frameworks. Canada must play a full part in this industrial revolution. Based on local, renewable and reliable energy, the electrification of transport strengthens our autonomy, reduces our vulnerabilities and is a concrete lever for prosperity. The decisions taken today will shape the automotive industry for decades to come. We therefore welcome the government's ambition; our energy resilience, our security and our economic vision are at stake," concludes Mr. Laprés-Paradis.
About Propulsion Québec
Quebec's Electric and Intelligent Transportation Industry Cluster is a non-profit organization whose mission is to accelerate the growth of Quebec's zero-emission ground transportation industry and strengthen its international competitiveness. It was created in 2017 and today has more than 215 member organizations from the TEI ecosystem that it represents and mobilizes around initiatives. Propulsion Québec is currently focusing its initiatives around three sectors: zero-emission vehicles, charging and batteries. The cluster is financially supported by the Government of Quebec, the Government of Canada, the Communauté métropolitaine de Montréal (CMM), Fasken and Hydro-Québec, and the Fonds FTQ.
