A leader in Canada’s auto industry says Ottawa’s ambitious targets to phase out combustion vehicles will put pressure on automakers in the country.

Flavio Volpe, president of the Automotive Parts Manufacturers’ Association, told BNN Bloomberg that he is a “massive supporter of electrification,” but he expects the transition will be difficult for the industry to navigate, noting that most consumers are still buying combustion vehicles.

“We need some realism,” Volpe said in a Tuesday interview. “You can say that you're going to regulate those sales and that you're going to exclude internal combustion (vehicles), but right now buyers are buying internal combustion vehicles, that’s where the volume is.”

Last month, federal Environment Minister Steven Guilbeault finalized regulations to phase out the sale of gas-powered vehicles – and mandate sales of battery-powered vehicles – by 2035.

Under the new rules, automakers will be required to gradually increase the proportion of EVs they offer to consumers each year. 

That transition is a “full capital commitment” that requires fully retaining staff at a time when sales volumes “are not there,” according to Volpe.

He said the automotive industry needs to decarbonize, but it is a “stressful time” for companies in the sector that are retooling facilities to keep up with the changes.

With files from the Canadian Press