From the relentless assembly lines that stamped out 92% of Canada's vehicles last year to the billions invested in an electric future, Ontario's automotive heart is driving a profound transformation that is redefining the nation's industrial landscape.
Key Takeaways
- In 2022, Ontario's automotive assembly plants produced 1,248,300 light vehicles, representing 92% of Canada's total light vehicle production
- Canada's total motor vehicle production reached 1,358,900 units in 2023, a 5.2% increase from 2022 driven by SUV demand
- Windsor Assembly Plant (Stellantis) assembled 343,200 Jeep Wrangler and Gladiator vehicles in 2022
- The Canadian auto industry directly employed 125,000 workers in 2023, down 2% from 2022 due to transitions
- Ontario accounted for 82,500 auto manufacturing jobs in Q4 2023
- Average hourly wage in Canadian auto assembly was CAD 35.20 in 2022
- New vehicle registrations in Canada totaled 1,590,200 in 2023, up 12.5% from 2022
- Passenger car sales: 418,900 units in 2023, 26% of total market
- Light truck/SUV sales dominated with 1,171,300 units (74%) in 2023
- Exports of vehicles from Canada totaled 1,420,000 units in 2023, valued at CAD 85 billion
- 92% of Canadian auto exports went to the US in 2023
- Auto parts exports: CAD 58.4 billion in 2023, up 6%
- Auto sector GDP contribution: CAD 44 billion in 2023 (1.7% of total GDP)
- Total economic impact including indirect: CAD 120 billion and 550,000 jobs in 2023
- Tax revenues from auto industry: CAD 15.6 billion federally in 2022
Canada's auto industry thrives, producing over a million vehicles annually with strong growth and an electric shift.
Economic
- Auto sector GDP contribution: CAD 44 billion in 2023 (1.7% of total GDP)
- Total economic impact including indirect: CAD 120 billion and 550,000 jobs in 2023
- Tax revenues from auto industry: CAD 15.6 billion federally in 2022
- R&D tax credits claimed: CAD 1.2 billion in 2023
- Foreign direct investment in auto: CAD 6.8 billion in 2023
- EV incentive program iZEV: CAD 1.4 billion rebates issued 2019-2023
- Supply chain spending: CAD 80 billion domestically in 2022
- Productivity growth in auto manufacturing: 2.1% annualized 2018-2023
- Capital investments: CAD 10.2 billion in 2023, focused on EVs
- OEM supplier payments to SMEs: CAD 25 billion annually
- Inflation impact on auto costs: 6.5% rise in 2023
- Competitiveness index: Canada ranked 4th in North America 2023
- Zero-emission vehicle mandate investment needs: CAD 75B by 2035
- Tourism from auto plants: CAD 200 million economic spin-off yearly
- Carbon pricing revenue from auto: CAD 800 million in 2023
- Venture capital in auto tech: CAD 450 million in 2023
- Bankruptcy impacts avoided: CAD 5B through government support 2020-22
- Multiplier effect: every direct job creates 4.4 indirect
- Export multiplier: 2.8 for GDP per export dollar
- Digital transformation spend: CAD 2.5B in 2023
- Skills gap cost: CAD 1.1B annually estimated 2023
- Battery ecosystem investments: CAD 20B committed by 2024
- Trade war tariffs cost: CAD 1.2B 2018-19, recovered
Economic Interpretation
The auto industry is Canada's high-stakes economic engine, revving with a $120 billion impact and 550,000 jobs, yet it's nervously checking its mirrors at the $75 billion price tag for an electric future while navigating potholes like inflation and skills gaps.
Employment
- The Canadian auto industry directly employed 125,000 workers in 2023, down 2% from 2022 due to transitions
- Ontario accounted for 82,500 auto manufacturing jobs in Q4 2023
- Average hourly wage in Canadian auto assembly was CAD 35.20 in 2022
- 45% of auto workers in Canada were unionized as of 2023, primarily Unifor
- Women comprised 22% of the automotive manufacturing workforce in 2022
- Youth (15-24) employment in auto sector was 8,500 in 2023
- Skilled trades like welders numbered 28,000 in auto industry 2022
- R&D employment in auto sector reached 12,400 in 2023, up 15%
- Temporary foreign workers in auto parts: 5,200 visas in 2022
- Job vacancy rate in auto manufacturing was 4.2% in Q1 2024
- Apprenticeships in auto trades: 3,200 active in 2023
- Indigenous employment in auto sector: 2,100 workers (1.7%) in 2022
- Layoffs post-2020: 65,000 temporary in auto sector, recovered 90% by 2023
- Average tenure for auto assembly workers: 12.5 years in 2022
- EV transition retraining programs enrolled 4,500 workers in 2023
- Parts sector employment: 142,000 in 2023
- Executives and managers in auto: 8,900 positions in 2022
- Injury rate in auto manufacturing: 2.1 per 100 workers in 2022
- Diversity training reached 75% of workforce by 2023
- Remote work in auto admin roles: 15% in 2023
- Pension coverage: 88% of auto workers in 2022
- Overtime hours averaged 450 annually per worker in assembly 2023
- STEM graduates entering auto: 1,800 yearly in 2022-23
- Supplier jobs: 500,000 indirect in auto ecosystem 2023
- Wage growth in auto: 4.8% in 2023
- Visible minorities: 28% of auto workforce 2022
- Shift workers: 65% in assembly plants 2023
- Retirements projected: 20,000 by 2028
Employment Interpretation
While Ontario's assembly lines hum with well-paid, unionized veterans, the Canadian auto industry is wrestling with an identity crisis, trying to retrain its loyal workforce for an electric future, attract diverse new talent to fill persistent gaps, and somehow replace a looming wave of retirements—all without dropping a single bolt.
Production
- In 2022, Ontario's automotive assembly plants produced 1,248,300 light vehicles, representing 92% of Canada's total light vehicle production
- Canada's total motor vehicle production reached 1,358,900 units in 2023, a 5.2% increase from 2022 driven by SUV demand
- Windsor Assembly Plant (Stellantis) assembled 343,200 Jeep Wrangler and Gladiator vehicles in 2022
- Oshawa Assembly Plant (GM) produced 156,400 Chevrolet Silverado pickups in 2023 after reopening
- Toyota's Cambridge and Woodstock plants manufactured 512,700 vehicles including RAV4 and Lexus models in 2022
- Honda's Alliston plant output was 384,500 Civic and CR-V units in 2023
- Ford's Oakville Assembly shifted to electric Super Duty trucks, planning 150,000 units annually by 2026
- In Q1 2024, Canadian auto production hit 372,100 vehicles, up 8% YoY
- Engine production in Canada totaled 2.1 million units in 2022, with 60% exported
- Parts manufacturing output value reached CAD 45.6 billion in 2022
- Stellantis CAMI Assembly in Ingersoll produced 145,200 electric delivery vans in 2023
- GM Ingersoll produced 1.2 million propulsion systems in 2022
- 2023 saw 28% of Canadian production as electrified vehicles, up from 12% in 2021
- Average daily vehicle production rate in Canada was 4,200 units in December 2023
- Ontario exported CAD 58 billion in auto parts in 2022
- Canada's stamping sector produced 4.5 million tonnes of steel parts in 2022
- EV battery production capacity in Canada projected to reach 100 GWh by 2030
- In 2021, auto sector R&D spending was CAD 2.8 billion
- Plastic components output for autos was 450,000 tonnes in 2023
- Foundry output for auto castings hit 1.8 million tonnes in 2022
- Wiring harness production employed 15,000 workers producing 120 million units annually pre-2020
- 2024 forecast: 1.45 million vehicles produced, 7% growth
- Quebec's auto parts sector output CAD 12 billion in 2022
- Magna International's auto divisions produced components for 18 million vehicles globally from Canada in 2023
- Linamar's powertrain components output value CAD 3.2 billion in 2022
- Diesel engine production in Canada fell to 250,000 units in 2023 from 450,000 in 2019
- Forging sector for auto parts produced 350,000 tonnes in 2022
- Electronics modules for vehicles assembled in Canada totaled 8 million units in 2023
- Tire manufacturing in Canada output 25 million units for OEM in 2022
- Glass production for autos was 45 million sqm in 2023
Production Interpretation
Ontario is essentially Canada's automotive heart, beating out a steady rhythm of trucks and SUVs while cleverly rewiring its pulse to include a growing, electric hum.
Sales
- New vehicle registrations in Canada totaled 1,590,200 in 2023, up 12.5% from 2022
- Passenger car sales: 418,900 units in 2023, 26% of total market
- Light truck/SUV sales dominated with 1,171,300 units (74%) in 2023
- Toyota led sales with 206,500 vehicles sold in 2023
- Ford sales: 302,100 units in 2023, boosted by F-Series
- GM sales: 278,400 in 2023
- Stellantis sales: 194,700 units in 2023
- EV/PHEV sales: 209,200 units in 2023, 13% market share
- Tesla Model Y was top seller with 64,600 units in 2023
- Average transaction price for new vehicles: CAD 52,300 in Q4 2023
- Used vehicle sales: 2.1 million in 2023
- Ontario registrations: 680,000 new vehicles in 2023 (43%)
- Quebec sales: 380,200 units in 2023
- Pickup truck sales: 412,500 units in 2023, led by Ford F-150 (192,400)
- Luxury vehicle sales up 15% to 145,000 in 2023
- Fleet sales: 28% of total new vehicle market in 2023
- Incentives averaged CAD 4,200 per vehicle in 2023
- Online sales penetration: 22% of new vehicles in 2023
- CUV sales: 562,300 units (35% share) in 2023
- Import share of sales: 18% in 2023, mostly from US/Mexico
- Dealer inventory averaged 45 days supply in 2023
- 2024 forecast sales: 1.7 million units
- Hyundai/Kia combined sales: 156,800 in 2023
- Subaru sales: 78,200 units, top growth at 22%
- Retail sales per dealer: CAD 45 million annually avg 2023
- Lease penetration: 32% of sales in 2023
Sales Interpretation
Despite Canadians' wallets being mercilessly assaulted by an average price of over $52,000, their defiant love affair with trucks and SUVs roared on unabated in 2023, with electric vehicles quietly parking a 13% market share while the perennial Ford F-150 remained the king of the road.
Trade
- Exports of vehicles from Canada totaled 1,420,000 units in 2023, valued at CAD 85 billion
- 92% of Canadian auto exports went to the US in 2023
- Auto parts exports: CAD 58.4 billion in 2023, up 6%
- Vehicle imports into Canada: 380,500 units in 2023, 24% of sales
- USMCA compliance: 98% of exports qualified in 2023
- Ontario's auto trade surplus: CAD 45 billion in 2022
- Mexico imports of parts from Canada: CAD 4.2 billion in 2023
- EU auto trade deficit for Canada: CAD 2.1 billion in 2023
- Top export model: Chevrolet Silverado, 250,000 units to US 2023
- Border crossings for auto trade: 12 million trucks annually pre-COVID
- Tariffs avoided under USMCA: CAD 10 billion savings in 2023
- China imports to Canada autos: CAD 500 million, negligible share
- Re-exports through Canada: 15% of vehicle exports
- Trade growth with US: 8% in auto parts 2023
- Customs duties collected on auto imports: CAD 120 million in 2023
- Supply chain disruptions impacted 25% of imports in 2022
- Top parts export: engines CAD 12 billion in 2023
- Vehicle trade balance: CAD 50 billion surplus 2023
- Digital trade agreements boosted auto data flows, 2023 value CAD 1B
- Asia-Pacific exports grew 12% to CAD 3.5B in 2023
- Rule 55 compliance investments: CAD 5B since 2020
- Import from Japan: 120,000 vehicles 2023
- Parts import from US: CAD 35B, 60% of total
Trade Interpretation
Canada's auto industry is a roaring engine of trade, fundamentally hitched to a southern neighbor who happily buys nearly everything we build, while we politely import a few cars and a mountain of parts to keep the whole lucrative, surplus-generating machine humming along.
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