Industry and Technology

The House of Commons Industry and Technology committee met to study Canada's automotive strategy, particularly in the context of U.S. tariffs and the government's recent agreement to allow Chinese electric vehicle imports under a quota. Witnesses included Charles Vincent, a senior departmental official; Michael Kovrig, founder of the Global Network for Strategic Effects; Cherith Sinasac, director of government affairs for Electro-Federation Canada; Jeff Turner, director of mobility at Dunsky Energy and Climate Advisors; and Brian Kingston, president of the Canadian Vehicle Manufacturers' Association.

Charles Vincent, a senior assistant deputy minister, did not deliver opening testimony but responded to a request from a member to provide the committee with data on total disbursements to the battery sector and on the number of SMEs and jobs affected by U.S. tariffs, by region and sector. He agreed to follow up with accurate figures.

Michael Kovrig argued that importing Chinese electric vehicles under a quota risks warping Canada's advanced manufacturing and creating structural dependence, unfair competition, and systemic pressure on policy autonomy. He recommended making the quota temporary, non-automatic, and reversible, with a threshold and exit strategy, tightened eligibility screening, rewards for verified Canadian capability, quarterly allocations with no automatic increases, alignment with the U.S. on connected vehicle security, and an automatic snap-back if Beijing renews coercion. He disagreed with the minister's view that Chinese joint ventures could be attracted under Canadian conditions, calling that unrealistic.

Cherith Sinasac called for a strong, long-term EV charging infrastructure strategy that invests in public charging and multi-unit residential building retrofits, and ensures chargers, vehicles, and grids work together seamlessly. She recommended capitalizing the zero emission vehicle infrastructure program, expanding the clean technology investment tax credit to include on-road EV charging, and developing a national technical framework for vehicle-grid integration through a federally convened forum. She noted that without alignment, residential EV investments risk becoming fragmented and underutilized.

Jeff Turner said that with the federal government's new automotive strategy, including tailpipe emissions standards and renewed purchase rebates, Canada's EV market is about to see a significant rebound, with a clear path toward a 75% market share by 2035. He emphasized that ongoing investment in public charging, retrofits of multi-unit residential buildings, and updated codes and standards are needed, and that the federal government can coordinate efforts to turn EVs into flexible grid assets through vehicle-grid integration, which could lower electricity costs for all consumers.

Brian Kingston recommended bolstering EV demand through purchase incentives and a credible charging strategy, securing access to the U.S. market as essential since diversification is not viable, eliminating the Canada-China strategic partnership because it undermines the auto sector and presents cybersecurity risks, and making Canada more competitive by reducing regulatory burden and lowering investment costs. He disagreed with the minister's claim that the EV mandate has been repealed, stating it remains in force, and argued that attracting Chinese joint ventures is not feasible because Chinese OEMs use knock-down kits and imported labour, not local supply chains.

The committee also heard from Minister Mélanie Joly in the first hour, who defended the government's auto strategy and the China deal as necessary to support canola farmers and fishers, and announced $1.5 billion in new supports, including loans through the Business Development Bank of Canada and regional development agencies. Members questioned her on the effectiveness of loans versus tariff relief, the risk of forced labour in Chinese EVs, and the security of connected vehicle data, with the minister stating that forced labour will be addressed through legislation and that security rules are being developed.