Automotive

Building on more than a century of automotive manufacturing, Canada is at the forefront of the world’s automotive future. Just look at Canada’s progress and promise in battery electric vehicles (EV), fuel cell electric vehicles (FCEV), and connected and autonomous vehicles (C/AV). When it comes to the future of automotive, investing in Canada puts you in the driver’s seat.

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We’re investing over a billion dollars in both of our major manufacturing plants right now for new production that will be taking place in Canada. This is a big opportunity for Canadian suppliers as well.

David Paterson, VP, Corporate & Environmental Affairs, GM Canada
men working on car

Why Toyota has been investing in Canada since 1988

Learn why Toyota recently invested $1.4 billion in its Waterloo and Cambridge, Ontario facilities and what advantages Canada offers automotive manufacturers. 

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Investing in the future of automotive in Canada

Automotive industry transition

The Canadian provinces of British Columbia and Quebec are active partners in the International Zero Emission Vehicle Alliance (ZEV Alliance), which has agreed to make all new passenger vehicle sales zero-emission by 2050 or sooner. With generous incentives in place to purchase new ZEVs—Quebec and BC have the most significant incentives in North America—and with greater charging infrastructure being built across the country, Canada will continue to be a driving force for the future of automotive for years to come.

Market access

Canada has 15 free trade agreements with 51 countries, representing approximately 1.5 billion people and 63% of the world’s GDP.  Aided by tariff-free access to growing electric vehicle markets through the Canada-USA-Mexico Agreement (CUSMA), the Canada-European Union Comprehensive Economic and Trade Agreement (CETA), and the Canada-United Kingdom Trade Continuity Agreement (Canada-UK TCA), Canada is expected to see its ranking for EV demand rise to 6th in the world from its current 11th place. Canada’s ports and infrastructure are well-equipped to meet current and future demand.

Incentives

As part of the Accelerated Investment Incentive, Canada introduced federal tax credits, which include an immediate 100% write-off for newly acquired manufacturing and processing equipment. Additionally, Canada is the first country in the G20 to offer a tariff-free zone for industrial manufacturers, allowing investors to import advanced machinery and equipment from their parent companies free of import duties.

The Advanced Manufacturing (NGen) Supercluster connects manufacturers, technology providers, researchers, schools, government, investors and business networks to accelerate the design and adoption of next-generation manufacturing technologies.

The Scientific Research and Experimental Development (SR&ED) Program provides income-tax credits and refunds for expenditures on eligible R&D activity in Canada.

The Strategic Innovation Fund (SIF) bolsters business investments in Canada's most dynamic and innovative sectors by supporting business activities such as R&D projects, firm expansion, large-scale, global-investment attraction, collaborative technology demonstration projects and clean technology adoption and decarbonization

You’re in good company

Recent Investment Announcements

Jun2021

Nova Bus

Nova Bus, part of the Volvo Group (Sweden) announced a total investment of $184 million to modernize its EV manufacturing facilities in Saint-Eustache and Saint-François-du-Lac, Quebec. The Government of Canada is providing $15 million through the Strategic Innovation Fund.

Apr2021

cellcentric / Daimler AG / Volvo

In creating cellcentric, a fuel-cell joint venture with operations in Burnaby, British Columbia and in Stuttgart, Germany-based Daimler AG and Sweden-based Volvo formalized its industry-first commitment to accelerate the use of hydrogen-based fuel-cells for long-haul trucks, and beyond.

Feb2021

General Motors

General Motors Canada announced the opening of its Canadian Technical Centre McLaughlin Advanced Technology Track (CTC MATT) in Oshawa, Ontario. The track supports the testing of advanced GM vehicle software and technologies to enable a self-driven, all-electric, highly connected future.

Jan2021

General Motors

General Motors announced a planned investment of $1 billion to transform its CAMI plant in Ingersoll, Ontario into a hub for producing electric commercial delivery vans.

Oct2020

Stellantis

Stellantis (formerly Fiat Chrysler Automobiles and PSA Group) announced it will invest up to $1.5 billion in a state-of-the-art multi-energy vehicle platform at the Windsor Assembly Plant that will enable the assembly of both plug-in hybrid vehicles and battery electric vehicles, creating up to 2,000 jobs by 2024.

Mar2017

Ford

Ford is expanding its Canadian research and development presence with a $500 million investment, extending its connectivity leadership with the addition of more than 400 software and hardware engineers, and plans to establish a new Ottawa Research and Engineering Centre. The additional 400 engineers, approximately 300 of whom will be based in Canada, more than doubles Ford’s mobile connectivity engineering team.

Jan2020

AutonomouStuff / Hexagon

Illinois-based AutonomouStuff, whose parent company is Sweden-based Hexagon, set up a research facility at the Ottawa L5 test track to develop an autonomy-ready platform that companies can use as a testbed for their app development, citing the city’s post-secondary institutions for talent and the strength of the city’s AV sector.

Apr2018

Aurrigo

Aurrigo, the autonomous vehicle division of UK-based RDM Group, opened a new sales and technical office in Ottawa and is collaborating with academic, industry and government partners to support testing, validation and further development of its AV technology.