On this page
- Strengthening Canada’s automotive sector
- The future of Canadian vehicles
- Made in Canada
- Key initiatives
- Related links
- Latest news
Strengthening Canada’s automotive sector
Canada's automotive industry plays a key role in the economy. With a $16.8 billion contribution to Canada’s GDP in 2024, it is one of the country’s largest manufacturing and export sectors. In 2024, the industry directly employed more than 125,000 people and indirectly supported approximately 427,000 jobs, including through aftermarket services and dealership networks.
Recognizing that the future of the automotive industry is electrified and connected, the government is securing domestic production and catalyzing new investments in the sector, diversifying the country's export markets, prioritizing next-generation technologies and positioning Canada’s automotive industry for stability and success for decades to come.
Learn more about: Canada’s automotive strategy.
The future of Canadian vehicles
Video: Canada was built for a green future
[Music starts]
[Text on screen: Canada was built for a green future]
[Fade up on a map of Canada. A road appears across the country. An animated series of images then shows mining, a battery manufacturing supply chain, and an electric vehicle cross-section.]
Narrator: Canada was built for a green future. Across the country, the government is accelerating the transportation sector’s road to net zero, and helping to build Canada’s green economy.
[Text on screen: cobalt graphite lithium nickel]
Home to abundant cobalt, graphite, lithium and nickel reserves, which are essential in building EV batteries, Canada is scaling up manufacturing, processing and recycling of critical minerals and becoming a leader in the global green economy.
[Text on screen: leader in the global green economy]
Canada’s more than half a million auto industry workers are contributing to a greener future. The government has been supporting the auto industry’s transition to the cars of the future with investments that help create and maintain tens of thousands of jobs throughout the economy.
[Text on screen: Canada is establishing its own EV battery supply chain]
Canada is establishing its own EV battery supply chain. That’s right—in the next few years, Canadians can expect more EV options to include batteries made in Canada.
[Text on screen: Made in Canada]
The government is supporting auto and battery manufacturers, supply chain companies and the mining industry, transforming Canada’s transportation sector, building zero-emission vehicles and creating well-paying jobs for Canadians all across the country. Canada’s road to net zero is getting greener and greener every day, driving towards a cleaner, greener and more sustainable future.
[Text on screen: cleaner, greener, and more sustainable future. Learn more at canada.ca/sif]
[ISED signature]
[Canada wordmark]
[Music ends]
To help achieve the goal of net-zero emissions by 2050, Canada is solidifying its position in the global electric vehicle (EV) and EV battery supply chains. Advancements in alternative powertrains, battery technologies, and highly fuel-efficient internal combustion engines are at the forefront of engineering the vehicles of the future. Companies across Canada are helping to shape these technologies. Canadian companies and academic institutions are involved in battery research and development activities that will help improve the range of EVs and lower their costs.
In the past few years, the Government of Canada has also stepped up to attract key private investments to produce EVs, as well as batteries and battery components. Federal and provincial government collaboration with industry has led to significant announced investments to transition to EV production and to establish a battery supply chain in Canada.
Canadian companies are also major players in developing other transformative automotive and battery technologies. Growth in Canada's vibrant technology industry is increasingly driven by clusters of expertise in artificial intelligence, including machine learning, deep learning, neural networks and computer vision.
Learn more about the future of Canadian vehicles.
Made in Canada
In 2024, five original equipment manufacturers—Ford, General Motors, Honda, Stellantis and Toyota—assembled more than 1.31 million light-duty vehicles at their Canadian plants. These plants are supplied by a vibrant ecosystem of nearly 700 parts suppliers, including Tier 1 anchoring firms such as Martinrea, Linamar and Magna. Canada is also home to one of the world’s only machine-tool-die-and-mould making clusters. Together, this encompasses a proud legacy of high-quality automotive manufacturing, with vehicles having been built in Canada for over a century.
In addition to light-duty vehicles, Canada has expertise in manufacturing medium- and heavy-duty vehicles, as well as commercial buses. Canadian manufacturers produce vehicles for major public transportation systems, national rail networks and specialized applications, such as mining.
| Company | Location | Products |
|---|---|---|
| Ford Canada | Oakville, Ontario | Ford Edge (end of production May 2024) |
| General Motors Canada | Ingersoll, Ontario | BrightDrop ZEVO 600/400 (SOP*: January 2023) |
| Oshawa, Ontario | Chevrolet Silverado (SOP*: November 2021) | |
| Honda Canada | Alliston, Ontario | Honda Civic (SOP*: April 2021), Honda CR-V (SOP: August 2022) |
| Stellantis Canada | Brampton, Ontario | Dodge Charger Daytona EV (SOP*: October 2024) |
| Windsor, Ontario | Chrysler Pacifica (SOP*: February 2016), Chrysler Voyager (SOP : February 2016) | |
| Toyota Canada | Cambridge, Ontario | Lexus NX (SOP*: March 2022), Lexus RX350/450 (SOP: October 2022), Toyota RAV4 (SOP: November 2018) |
| Woodstock, Ontario | Toyota RAV4 (SOP*: November 2018) | |
* SOP: Start of production
| Company | Location | Products |
|---|---|---|
| HINO | Woodstock, Ontario | Medium and heavy-duty vehicles |
| NFI Group | Winnipeg, Manitoba | Transit and coach buses |
| Nova Bus (member of Volvo Group) | St-Eustache, Quebec | Transit buses |
| Prevost (member of Volvo Group) | Sainte-Claire, Quebec | Coach buses |
| PACCAR | Sainte-Thérèse, Quebec | Medium-duty vehicles |
Key initiatives
A number of initiatives and programs are available to automotive companies across the supply chain, including to support investment in new technologies, EV and battery manufacturing, and to gain access to new markets.
Strategic Response Fund
The Strategic Response Fund (SRF) (formerly the Strategic Innovation Fund) is designed to drive Canada's industrial transformation and develop its long-term industrial capabilities. The program builds on the mandate of the Strategic Innovation Fund, maintaining support for innovation and growth, while expanding its focus to include responsive, targeted investment to help businesses adapt to emerging economic contexts, pivot and diversify to new markets. For more information, see the SRF website.
Regional Tariff Response Initiative
The Regional Tariff Response Initiative (RTRI) aims to strengthen the competitiveness of small and medium-sized enterprises by helping them boost productivity, cut costs, build more resilient supply chains and reach new markets. For more information, For more information, see the RTRI website.
Global Innovation Clusters
The Government of Canada has invested in the Global Innovation Clusters to continue to strengthen their ecosystems and position Canada for global markets. Five clusters were selected, including the Advanced Manufacturing Cluster and the Scale AI Cluster. Funding opportunities include those that support the EV supply chain in Canada and accelerate industry adoption of enabling technologies through collaborative and incremental projects.
Clean Technology Manufacturing Investment Tax Credit
The Clean Technology Manufacturing Investment Tax Credit is a refundable tax credit of up to 30% that encourages investment in capital for clean technology manufacturing and processing, and critical mineral extraction and processing in Canada.
Canada Growth Fund
The Canada Growth Fund is a public investment initiative launched by the government to attract private capital and invest in Canadian projects and businesses.
Export Development Canada
Export Development Canada provides trade finance and risk mitigation services to businesses.
Business Development Bank of Canada
The Business Development Bank of Canada provides financing, venture capital and consulting services to businesses.
The Business Benefits Finder
The Business Benefits Finder digital platform offers a tailored list of what government can do for businesses. It is an online tool that brings together Canada's innovation programs and services in one place. It has information on financing, funding programs, tax credits, wage subsidies, services designed to help businesses innovate, and expert advice to drive new collaborations.
Region-specific programs
Canada's Regional Development Agencies have additional programs available to support businesses including project financing, and funding programs for innovation, employee education and training.
Related links
Zero-emission vehicles (ZEV) portal: Find information on ZEVs, including on the types of vehicles available, the benefits of owning a ZEV and related Government of Canada initiatives.
Associations and organizations: Learn about the organizations working in Canada's automotive sector.
Regulations and standards: Innovation, Science and Economic Development Canada works closely with other federal government departments and agencies, the provinces, and representatives of the automotive and transportation sectors, on Canadian vehicle safety and emissions regulations.
Canadian company directories: Search for Canadian companies that can supply your organization with goods, services or technology.