The Canadian automotive industry had a challenging year in 2021, as the ongoing COVID-19 pandemic continued to disrupt production and sales. However, the industry has shown signs of recovery as vaccination efforts have gained momentum and restrictions have been lifted.
Production and Sales
In terms of production, according to data from the Canadian Automotive Manufacturers’ Association (CAMA), vehicle production in Canada fell by 23.8% in 2020, with a total of 1.4 million units produced. However, production has been gradually recovering in 2021, with a total of 1.8 million units produced, an increase of 28.6% compared to 2020.
In terms of sales, the Canadian automotive market also saw a decline in 2020, with a total of 1.8 million vehicles sold, a decrease of 15.7% from the previous year. However, the market has shown signs of recovery in 2021, with total sales increasing by 13.6% during the first half of the year, reaching 972,000 vehicles sold.
As for the breakdown of vehicles, in 2021, Light trucks continue to be the most popular type of vehicle sold in Canada, with a market share of 63.8%. Passenger cars had a market share of 36.2%. Electric vehicles and hybrids represented 2.2% of the total sales in 2021.
Investment on EV
Despite these challenges, the Canadian automotive industry has continued to innovate and invest in new technologies. For example, many Canadian companies have been investing in electric and autonomous vehicle technology, as well as in connected and smart transportation solutions.
As of 2021, several Canadian automakers have released or announced plans to release electric and hybrid vehicles. For example, General Motors has announced plans to invest $1 billion in its Oshawa assembly plant in Ontario to produce electric vehicles, while Ford has announced plans to invest $1.45 billion in its Oakville assembly plant in Ontario to produce electric and hybrid vehicles.
The Canadian government has also announced plans to support the development and adoption of electric and hybrid vehicles. For example, the government has announced plans to invest $5 billion over the next five years to support the development and production of zero-emission vehicles and charging infrastructure. Additionally, several provinces, like Quebec and British Columbia, have their own EV incentive program to encourage citizens to buy electric vehicles.
Autonomous Vehicle Technology
In 2021, several Canadian companies have been making significant efforts in the development of autonomous vehicle technology.
BlackBerry QNX, a subsidiary of BlackBerry, which specializes in embedded systems and software for the automotive industry, has been working on developing advanced driver-assistance systems (ADAS) and autonomous vehicle technology for use in both cars and trucks. They have partnerships with major automakers such as Ford, BMW and Baidu to develop and deploy their autonomous driving platform.
Magna International, a Canadian multinational automotive supplier based in Ontario, has been working on developing autonomous vehicle technology, including sensors, software, and systems integration. Magna has partnerships with various companies in the automotive industry, including FCA, BMW, and Lyft, to develop and deploy autonomous vehicle technology.
Additionally, there are several startups in Canada working on autonomous vehicle technology. For example, Ottawa-based company, Ottawa-based Kinova Robotics, which designs, develops and manufactures robots for a wide range of applications, including autonomous vehicles. Also, the Toronto-based company, Clearpath Robotics, which designs and manufactures robots for industrial and research applications, including autonomous vehicles and drones.
Summery
The Canadian automotive industry faced significant challenges in 2021 due to the ongoing pandemic, but has shown signs of recovery as the year progressed, with production and sales both showing improvement. Additionally, the industry continues to innovate and invest in new technologies, positioning it well for the future.
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