CVMA Statement on the 2023 Federal Budget
The 2023 federal budget recognizes the competitiveness challenges posed by the U.S. Inflation Reduction Act (IRA) and introduces several new measures in response that will help to level the playing field for automotive and battery supply chain investments between Canada and the U.S.
The extremely aggressive incentives in the IRA are successfully redirecting electric vehicle (EV) and battery supply chain investments to the U.S. We urge the Canadian government to continue to expand its toolbox of supporting mechanisms to retain and attract these investments in Canada.
“The proposed Investment Tax Credit for Clean Technology Manufacturing is a welcome first step towards making Canada more competitive” said Brian Kingston, CVMA President and CEO. “We look forward to further details on how Canada will keep up with the U.S. in the transformation to electrification”.
In pre-budget advice to Deputy Prime Minister Freeland, the CVMA called on the federal government to ensure Canada’s readiness for the transition to EVs. Significantly more investment into EV charging infrastructure, grid capacity, and consumer supports is required to enable higher levels of adoption.
“We welcome new measures in the budget to accelerate the supply and transmission of the clean electricity required for electrification of the vehicle fleet,” Mr. Kingston said. “What is urgently needed now is a comprehensive plan to align the government’s ambitious EV sales objectives with the necessary charging infrastructure, grid capacity and consumer supports”.
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For further information, please contact:
Canadian Vehicle Manufacturers’ Association
Office: 416.364.9333