Canada’s recent shift away from a rigid EV sales mandate toward GHG-based emissions standards, combined with the return of EV purchase incentives, marks a significant change in federal automotive policy.
While ARC supports policies that reduce emissions and encourage innovation, how these measures are designed matters just as much as the intent behind them.
Incentives must be sustainable — and not destabilizing
Over-incentivizing any vehicle segment risks distorting the automotive ecosystem, particularly the auto repair and recycled parts markets that keep vehicles affordable, repairable, and on the road longer.
EV rebates must be:
• Sustainable for taxpayers;
• Calibrated so they do not unintentionally undermine the existing repair and recycled-parts marketplace;
• Designed with an understanding that repairability and parts availability are central to affordability and emissions reduction.
A cleaner fleet is not achieved simply by accelerating new vehicle sales — it also depends on keeping vehicles repairable and responsibly managed throughout their full lifecycle.
Auto recyclers must be part of the policy dialogue
Canada’s automotive recycling sector is routinely left out of upstream policy discussions, yet we are ultimately responsible for managing the outcome:
• vehicles written off due to collisions;
• vehicles deemed non-repairable; and
• end-of-life vehicles, whether ICE or EV.
When policy changes occur without recycler input, the burden shifts downstream — without the tools, funding, or information required to manage the risk properly.
EV transition requires training, data, and transparencyAs EV volumes increase, auto recyclers need:
• Formal EV training programs;
• Clear battery chemistry and safety information;
• Standardized guidance on dismantling, storage, transport, and emergency response;
• Reliable parts and fitment data to support repair and reuse.
These are not optional — they are public-safety and environmental necessities.
Chinese EV imports raise immediate and unresolved concerns
The introduction of Chinese-manufactured EVs into the Canadian market presents a new and urgent challenge.
At present, recyclers have little to no access to:
• repair procedures;
• battery specifications;
• dismantling and handling protocols:
• part numbering or fitment information.
This lack of transparency creates real safety, environmental, and operational risks for repairers, recyclers, insurers, and emergency responders alike.
ARC’s position
ARC supports a competitive automotive marketplace — but competition only works when all participants are operating with the same information, standards, and expectations.
Policy decisions around EV incentives, emissions standards, and trade must account for the full vehicle lifecycle, not just the point of sale.
Auto recyclers are not a downstream afterthought.
We are a critical part of Canada’s automotive system — and we must be included early, consistently, and meaningfully in the conversation.
ARC is ready to engage — constructively and collaboratively — to ensure Canada’s transition is safe, affordable, and responsible from first registration to final recovery.
Download the Position Statement HERE.