Global & Canada Automotive Powertrain Market to 2031

Between 2024 and 2031, Canada’s automotive powertrain market is showing consistent growth, fueled by government support and a national move toward zero-emission vehicles (ZEVs). In 2024, the Canadian market accounted for 11% of North America's total automotive powertrain revenue. Sales of electric vehicles saw moderate growth, with ZEVs making up 8.7% of all new vehicle purchases, backed by financial incentives and the expansion of the public charging network, which now includes 29,473 stations. Hybrid vehicles also saw increased adoption, with a global sales rise of 15.1% in 2024, reflecting Canada’s emphasis on improving fuel efficiency. Although internal combustion engine (ICE) powertrains still represent 89% of the market, their dominance is gradually being challenged by stricter emissions regulations promoting electrification. The commercial vehicle segment, especially Class 8 trucks, is anticipated to grow significantly due to increasing private sector demand. Passenger vehicles remain the leading segment, holding a 68% market share, largely driven by the popularity of SUVs in urban areas. However, the industry faces ongoing obstacles, including a shortage of semiconductors and the high cost of EV batteries, which make up roughly 30% of an electric vehicle’s total cost. Key manufacturers such as Ford and General Motors are ramping up electric powertrain production, with companies like Magna International contributing innovations such as advanced e-motors. Canada’s regulatory efforts and investment in infrastructure are positioning the country for sustained growth in the electrified vehicle sector through the end of the decade.