Car & Automobile Manufacturing in Canada
Over the five years to 2019, the Car and Automobile Manufacturing industry in Canada has struggled to recover as many automakers have moved operations abroad. Dissuaded by high labour costs in Canada, many international automakers have refocused investments toward Mexico and the United States. Although demand for vehicles has rebounded, industry operators have been gradually scaling back operations domestically in favour of manufacturing in other countries. Operators in Mexico benefit from lower wage costs, which can be passed on to downstream markets in the form of lower selling prices. Over the five years to 2024, automakers are expected to continue their off-shoring strategies, moving production to the United States and Mexico, which will likely decrease the amount of production in Canada. However, disposable income levels are anticipated to rise, and demand from new car dealers is expected to climb moderately.
Companies in this industry manufacture cars and automobile chassis. These companies, referred to as automakers, typically produce cars, including electric cars, in assembly plants. The manufacture of light trucks (e.g. vans, pickups and SUVs) and heavy trucks is excluded from this industry. In addition, crossover vehicles (CUVs) are excluded from this industry as well, despite being built on car chassis.
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.
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