Car & Automobile Manufacturing in Canada - Market Research Report (2014-2029)

Left turn: Rising external competition will likely stifle demand and revenue growth for industry operators

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.

The Car and Automobile Manufacturing industry in Canada has shrunk as many automakers have moved operations abroad. Dissuaded by high labour costs in Canada, many automakers have shifted investments toward Mexico and the United States. As a result, output has fallen from Canada's biggest car producers while remaining operations have increasingly focused on vehicle production that falls outside of the industry such as sport utility vehicles (SUVs). Exports have likewise decreased due to lower production capacity and temporary plant closures following the global semiconductor chip shortage. As a result, industry revenue is expected to fall at a CAGR 15.6% to $9.8 billion over the five years to 2023, although a projected uptick in revenue of 9.7% is forecast for the current year.

Companies in this industry manufacture cars and automobile chassis. These companies, referred to as automakers, typically produce cars, including electric cars, in assembly plants. The manufacture of light trucks, such as vans, pickups and SUVs; and heavy trucks is excluded from this industry. In addition, crossover vehicles (CUVs) are excluded from this industry as well, despite being built on car chassis.