The federal government is developing a new automotive policy following Prime Minister Mark Carney’s decision to grant Chinese carmakers broad access to Canada’s battery electric vehicle market, raising concerns about the future of domestic EV production.Blacklock's Reporter says Liberal MP Karina Gould (Burlington, Ont.), chair of the Commons finance committee, told reporters the strategy is “really important” for protecting Canadian autoworkers. “Of course, being from Southern Ontario, we’re fighting really hard for autoworkers,” Gould said. When asked about the Chinese electric vehicle quota, she added, “I want to see what the auto strategy is going to be.”Industry Minister Mélanie Joly said a formal announcement is forthcoming. “I will have the opportunity to announce our policy on the automotive sector shortly,” she said, adding the plan will address electrification, vehicle affordability, and support for Canadian manufacturers. “There are approximately 500,000 people working in the automotive sector in Canada,” Joly said. “This has a huge impact on the economy of Ontario, Québec, and across our country.”.The move follows Carney’s suspension of 100% tariffs on Chinese battery electric vehicles on January 16, with an initial yearly quota of 49,000 vehicles. For context, total annual sales in Canada’s battery electric vehicle market have averaged 108,000 vehicles since 2020, according to Statistics Canada.Ottawa first imposed the Chinese tariffs in 2024, citing predatory trade practices. Then-Finance Minister Chrystia Freeland accused China of deliberately overproducing EVs to undermine Canadian manufacturers. “We simply will not allow that to happen to our electric vehicle sector, which is showing such promise and in which we have spent heavily,” Freeland said at the time.Federal support for Canada’s electric auto sector has totaled up to $50 billion, according to a 2023 Budget Office report, Costing Support For EV Battery Manufacturing. The department requested updated figures last September following the bankruptcy of Northvolt, the developer of a proposed $1.3 billion battery factory in Sainte-Basile-le-Grande, Que., which had received substantial federal subsidies.
