Canada’s push toward 75% EV sales by 2035 and 90% by 2040 is no longer theoretical. With more than $97 million in new clean transportation funding announced this week — and a $2.3 billion EV Affordability Program launching — EV volume on Canadian roads is set to increase significantly over the next decade.
For collision repair facility owners, managers and insurance appraisers already working on electric vehicles, the federal government’s new Automotive Strategy points to one clear reality: EV repair demand is going to rise — and fast.
Canada’s Automotive Strategy is designed to protect and secure the auto industry while building a globally competitive sector focused on next-generation vehicle manufacturing. The plan combines consumer incentives, infrastructure expansion and strengthened emissions standards to drive EV adoption nationwide.
$97 Million for Charging, Fleets and EV Education
Following the launch of the Automotive Strategy, the Honourable Tim Hodgson, Minister of Energy and Natural Resources; the Honourable Steven MacKinnon, Minister of Transport and Leader of the Government in the House of Commons; and the Honourable Julie Dabrusin, Minister of the Environment, Climate Change and Nature, announced more than $97 million for 155 clean transportation projects across Canada.
The 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.
Canada has already installed more than 30,000 electric vehicle chargers nationwide through Natural Resources Canada’s Zero Emission Vehicle Infrastructure Program. The Automotive Strategy builds on that progress with the development of a National Charging Infrastructure Strategy intended to promote EV adoption, attract private sector investment and create well-paying jobs across the EV supply chain.
For repair facilities and insurers, increased charger density and public awareness directly support consumer confidence — a key driver of EV purchase decisions.
Stronger Emissions Standards, Repeal of Availability Mandate
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.
For the repair and appraisal community, this policy shift means EV growth will be driven by emissions outcomes rather than production quotas — but the trajectory toward electrification remains firm.
$2.3 Billion EV Affordability Program
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.
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.
In parallel, Canada will enhance the 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.
Repair Sector Implications
For EV-certified facilities, structural repair specialists and insurance appraisers, the message is clear: federal policy continues to accelerate electrification.
As EV sales move toward the stated targets of 75% by 2035 and 90% by 2040, the industry can expect:
- Increased high-voltage vehicle volume
- Greater demand for battery diagnostics and safe handling procedures
- Expanded need for OEM-compliant repair documentation
- Ongoing training requirements for technicians and estimators
The Automotive Strategy is positioned as a long-term framework to protect Canada’s auto industry while transforming it to compete globally. For the EV repair community, it reinforces that electrification is not slowing — and preparation today will determine who captures tomorrow’s repair volume.
