Canada Introduces New Auto Strategy by Expanding EV Charging Infrastructure Across the Country

February 12, 2026

 On February 5, Canada announced its new Automotive Strategy.

The strategy includes a new five-year Electric Vehicle Affordability Program and enhanced charging infrastructure through investments through the Canada Infrastructure Bank’s $1.5-billion Charging and Hydrogen Refuelling Infrastructure Initiative.

Canada has installed more than 30,000 electric vehicle chargers across the country through Natural Resources Canada’s Zero Emission Vehicle Infrastructure Program. The Automotive Strategy builds on progress to date by announcing the development of a National Charging Infrastructure Strategy, which will promote EV adoption, while attracting private sector investment, and developing the EV supply chain. 

Following last week’s launch of Canada’s Automotive Strategy more than $97 million for 155 clean transportation projects across Canada has been announced. This funding includes:

• $84.4 million for 122 projects to install more than 8,000 electric vehicle chargers across Canada through the Zero Emission Vehicle Infrastructure Program
• $5.7 million for three projects through the Green Freight Program to help Canadian fleets reduce their fuel costs and emissions through vehicle repowering, the purchase of low-carbon alternative fuel vehicles and the implementation of best practices to improve fuel efficiency
• $7.2 million for 30 education and awareness projects — 11 of which are Indigenous-led — to increase public and industry knowledge and confidence related to EVs, EV charging and clean fuels.

Federal Government Automotive Strategy:

1. To accelerate investment in Canada’s auto manufacturing sector, Canada’s new government will:
   • Allocate $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.
   • Harness the Productivity Super-Deduction and reduced corporate tax rates for zero-emission technology manufacturers to encourage investment in clean technologies and EVs.
2. To rationalise emissions reduction policies to focus on outcomes that matter to Canadians, Canada’s new government will:
   • Introduce stronger greenhouse gas emission standards that put Canada on a path to achieve a goal of 75% EV sales by 2035 and 90% EV sales by 2040 – reducing our carbon footprint and securing Canada’s global leadership in clean energy.
   • These more stringent emissions standards will enable the Government of Canada to repeal the Electric Vehicle Availability Standard. This approach will allow manufacturers to use a wide array of technologies to meet the standards and respond to consumer preferences in the near-term, while driving EV adoption over time.
3. To strengthen domestic demand by making EVs more affordable and reliable for Canadians, Canada’s new government will:
   • Launch a five-year EV Affordability Program to lower the cost of EVs for Canadians and create a stronger domestic consumer market.
     • The new $2.3 billion program will offer individuals and businesses 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 (PHEVs) with a final transaction value of up to $50,000 on cars made by countries Canada has free trade agreements with. To support the Canadian automotive industry, this $50,000 cap will not apply to Canadian-made EVs and PHEVs.
   • Enhance our national EV charging network through investments of $1.5 billion through the Canada Infrastructure Bank’s Charging and Hydrogen Refueling Infrastructure Initiative, making it easier and more convenient for drivers to charge their EVs across the country.
4. To establish a comprehensive trade regime that strengthens the competitiveness of the auto sector, Canada’s new government will:
   • Strengthen Canada’s automotive remission framework to reward companies that produce and invest in Canada.
   • Maintain counter-tariffs on auto imports from the United States to ensure a level playing field for Canadian automotive manufacturers in the domestic market.
   • Canada recently deepened its strategic partnership with the Republic of Korea by signing a memorandum of understanding (MOU) to strengthen Canada-Korea industrial collaboration for future mobility. This builds on other MOUs that Canada has signed with global automakers to promote cooperation.
   • Canada has also agreed to a new strategic partnership with China, a global leader in EV manufacturing, to further diversify trade and catalyse new investment in the automotive sector. The recently announced partnership will look to drive new Chinese joint venture investment in Canada and allow for a fixed volume of Chinese EV imports into the Canadian market.
5. To protect Canadian auto workers and businesses from immediate pressures while helping them bridge them to the future, Canada’s new government will:
   • Provide support to employees through a new Work-Sharing grant – preventing layoffs and supporting worker retention so businesses can plan for the future.
   • Establish a new workforce alliance of industry, labour, and training partners to address bottlenecks and catalyse private investment.
   • Provide employment assistance and reskilling supports for up to 66,000 workers across Canada, including for displaced auto workers, with a $570 million investment.

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