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.
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.
Why Toyota has been investing in Canada since 1988
Learn why Toyota recently invested $1.4 billion in its Woodstock and Cambridge, Ontario facilities and what advantages Canada offers automotive manufacturers.
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Canada’s hydrogen fuel cell success story
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Electric cars
The world’s largest car manufacturers have found many reasons to build electric cars in Canada. Three global OEMs—Ford, GM, and Stellantis (formerly Fiat Chrysler)—are investing billions of dollars manufacturing battery EVs in Canada. Yes, Canada offers direct access to the world’s biggest markets buying light-duty passenger vehicles. Being the only country in the Western Hemisphere offering an end-to-end supply chain for EVs—from battery materials to brake pads—helps too.
Electric buses
Investment partners in the worldwide electric bus markets are getting on board. Canada is home to companies that include Sweden-based Nova Bus, Quebec-based Lion Electric, Manitoba-based New Flyer, and BC-based Green Power Motor Company. Major transitions of public transportation to zero-emission vehicles in Canada and the USA are bolstering growth and investment. In fact, two made-in-Canada buses are among the top-six most used buses in the US market.
Autonomous vehicles
With growing support for connected and autonomous vehicles (C/AV) from government and industry partners, opportunities for investment are on track to continue increasing. Canada ranks #1 for government-funded AV pilot projects and #1 for industry partnerships. More than 110 companies including GM, Ford, Google, Uber, Apple and Blackberry QNX are now actively involved in C/AV development in Ontario alone, which is also home to the first integrated C/AV test track of its kind, in Ottawa.
Fuel cell vehicles
Recognized internationally as a global leader in hydrogen and fuel cell technologies, Canada presents investors with expanding opportunities. As evidence of collaboration, the Automotive Fuel Cell Cooperation (AFCC), a joint venture between Daimler, Ford, and Ballard Power Systems, was instrumental in establishing the world’s first standardized automotive fuel cell stack production facility, in Vancouver. More than half of the world’s deployed fuel cell buses use Canadian-developed, Canadian-made hydrogen fuel cell powertrain technology.
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 49 countries, representing approximately 1.5 billion consumers 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
Leading research institutes
- Autonomous Vehicle Innovation Network
- ACE Climatic Aerodynamic Wind Tunnel at the Ontario Tech University
- CESAR (Canadian Energy Systems Analysis Research)
- Centre For Applied Business Research In Energy & The Environment (CABREE)
- The Clean Energy Research Center (CERC)
- L’Institut de l’Énergie Trottier
- Innovative Vehicle Institute
- L'Institut de recherche sur l'hydrogène (IRH), l'Université du Québec à Trois-Rivières
- Hydro-Québec’s Research Institute
- The University of Toronto’s Electric Vehicle Research Centre (UTEV)
- Waterloo Centre for Automotive Research (WATCAR)
- SHIELD Automotive Cybersecurity Centre of Excellence at the University of Windsor
You’re in good company
Recent Investment Announcements
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.
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.
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.
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.
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.
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.
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.
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.