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ARC Statement: EV policy, incentives and the full vehicle lifecycle

The Automotive Recyclers of Canada is warning Ottawa that EV incentives, emissions standards and trade policy must be built around the full vehicle lifecycle, not just accelerating new sales. ARC says sustainable rebates should protect repairability and the recycled-parts market, and calls for recycler input, EV training, battery safety data, and clearer procedures, including for Chinese-made EVs.

Wally Dingman, Executive Director of the Automotive Recyclers of Canada, speaking on EV policy and full vehicle lifecycle management. — Wally Dingman

The Automotive Recyclers of Canada (ARC) is urging the federal government to design electric vehicle policy around the full vehicle lifecycle, warning that any incentives, emissions standards and trade decisions must reflect downstream impacts on repair and recycling.

The position was set out in a policy statement written by ARC director Wally Dingman following Ottawa’s move away from a rigid EV sales mandate toward greenhouse gas-based emissions standards, alongside the return of federal EV purchase incentives.

While the association supports policies aimed at reducing emissions and encouraging innovation, Dingman said incentive programs must be sustainable and must not destabilize the repair and recycled-parts marketplace that supports affordability and extends vehicle life.

The statement argued that accelerating new vehicle sales alone does not ensure emissions reductions if repairability, reuse and responsible end-of-life management are not built into policy design. It went on to note that auto recyclers are frequently excluded from upstream policy discussions despite being responsible for managing collision write-offs, non-repairable vehicles and end-of-life units, including electric vehicles.

Dingman also outlined operational concerns tied to the EV transition, including the need for formal EV training programs, battery chemistry and safety information, standardized dismantling and storage guidance and reliable parts and fitment data.

The statement raised additional concerns about Chinese-manufactured EV imports, citing limited access to repair procedures, battery specifications and dismantling protocols as potential safety and operational risks for recyclers, repairers, insurers and emergency responders.The full statement is below.

ARC Policy Statement: EV Policy, Incentives, and the Full Vehicle Lifecycle

By Wally Dingman

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 transparency

As 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 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.