Montreal’s carsharing companies (car2go and Communauto) face new regulations from the city of Montreal, according to a report by Global News.

Mayor Denis Coderre’s administration wants to limit the number of carsharing vehicles in Montreal to 1,000, says the report.

car2go and Communauto told Global News that recent changes to regulate the industry and introduce electric vehicles are hurting the carsharing business.

“It makes it very difficult to move forward,” Jeremi Lavoie, car2go director general, told Global News. “Our projects are on hold at this point because we don’t know what the conditions will be like. That’s unfortunate because, at the same time, the business is growing. We are now with 40,000 members in Montreal alone.”

Currently, there are more than 1,000 vehicles between car2go and Communauto, according to the report.

When it comes to changes in parking permit regulations, carsharing users would have to pay 30% more for parking permits, says the report.

“Someone who owns a car in Montreal can buy [a permit] for roughly $100,” Benoit Robert, CEO and founder of Communauto, told Global News. “Why would people who decide to be part of the solution and decide not to own a car – why would they have to pay more than their share?”

Click here to read the full Global News report.