Passenger car assembly generates $15.5 billion in revenue in 2024 and employs 12,436 people across 94 companies. Although it now accounts for only a 1.4% profit margin, the ecosystem remains strategic: integration with North American supply chains, engineering expertise, and massive investments in electrification (over $40 billion in announced projects).
Production is concentrated in Ontario, but reliance on imports (91% of demand) and the relocation of factories to Mexico explain the historical contraction (CAGR of -2.2% from 2019 to 2024). However, the shift to zero-emission vehicles and the reshoring of battery value chains offer a new growth cycle for consolidators and innovative suppliers.
Three indicators summarize the size, structure, and rebound potential of the market.
Total value of vehicles coming off Canadian assembly lines.
High fragmentation paving the way for platform strategies and mergers.
Expected rebound driven by EV investments and improvements in supply chains.
The market is shifting toward green reindustrialization: federal targets call for 20% of ZEV sales by 2026 and 60% by 2030, supported by generous tax credits and the arrival of battery gigafactories. At the same time, robotics and generative AI are accelerating design cycles, while manufacturer-supplier alliances are securing critical semiconductors.
Foreign competition remains intense (imports > 90%), but the focus on electrified compact vehicles, the growing Canadian content in modular platforms, and vertical consolidation offer a scenario of moderate but profitable growth for players able to invest in innovation and carbon footprint reduction.
Three indicators summarize the size, structure, and rebound potential of the market.
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