Canada’s Automotive Industry - Engine of Economic Growth

The Economist Intelligence Unit rates Canada’s business environment as the best in the world among auto-producing nations. Canadian assembly plants enjoy a 6.4% cost advantage over the U.S. and stronger labour productivity scores than American or Mexican facilities.
Canada also has the second lowest corporate tax rate among the world’s Top 10 automotive countries – falling from 19% to 15% by 2012, less than half the U.S. rate. R&D spending in the motor vehicle and parts industries has more than doubled in the last decade, thanks to rich federal tax credits.
Indian companies, start your engines!

Look what Canada has to offer
- 3rd largest exporter of automotive products after Japan and the U.S., accounting for 16.7% of North American vehicle production

- Manufacturing – If you can drive it, Canada produces it. The Canadian automotive industry manufactures light duty vehicles such as cars, vans and pickup trucks. It makes heavy duty vehicles, including trucks, transit buses, school buses and military vehicles as well. All of the light vehicle assembly plants are located in southern Ontario while commercial truck and bus plants are located in Ontario, Quebec and Manitoba. Canada’s auto production also includes a wide range of parts, components and systems used in all these vehicles. The Automotive Sector represents Canada’s largest manufacturing sector, responsible for 14% of manufacturing GDP in 2007.
Vehicle Assembly – Canada is home to 22 passenger and commercial vehicle plants that produce 2.6 million units annually, with shipments valued at $60.8 billion. Canada’s production-to-sales ratio = 1.5:1.There are 36 high-volume assembly plants within a 500 km radius of the Windsor-Detroit border, which produced 6.98 million vehicles in 2007. Canada is also close to all major U.S. auto R&D centres. Vehicle assemblers have access to supply chains in the U.S. and Mexico.
Automotive Components – Canada’s 650+ automotive parts sector, with shipments valued at $32.7 billion in 2006, employs over 92,000 people. In addition to providing components for new vehicle manufacturing, the industry supplies replacement parts and accessories to Canada’s well-developed vehicle dealer network, which is recognized for aftermarket sales and service.

Canadian areas of expertise

Metal Processing:  Advanced casting of light metals, Cutting and machining, · Sheet and tube forming, Welding and joining, Powder metallurgy.

Advanced Materials: Lightweight materials, Nano-materials, Bio-materials

Advanced Design, Visualization & Manufacturing: Inspection and vision systems, Laser imaging, Tooling and robotics, Stereo-lithography, laser deposition, Virtual design

Advanced Technologies: Mechatronics, Powertrain engineering, Clean diesels, Fuel cells, hydrogen & alternative fuels, Homogenous charge compression ignition

Driving Innovation

Canada is a great place for product development and testing, and commercialization of new technologies. Companies operating in or locating to Canada benefit from generous R&D investment tax credits and funding and vibrant R&D clusters, including:
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AUTO21- Canada’s national network of centres of excellence for automotive R&D. Over 120 industry, government and institutional partners at more than 35 academic institutions, government research facilities and private sector research labs across Canada.

Automotive Innovation Fund - A $250 million program to support strategic, large-scale R&D projects in the automotive sector to develop innovative, greener and more fuel-efficient vehicles.

Automotive Research and Development Centre - A $500M R&D program focused on alternative fuel, mechanical engineering design, engine/transmission design, advanced materials, emissions, bio-mechanics and vehicle safety among others.

Automotive R&D Partnership Initiative– A $145M program designed to foster an innovative and competitive auto industry through industry-driven research.

Partnership for the Advancement of Collaborative Engineering Education - A $240-million program that focuses R&D in computer-aided design, manufacturing, engineering software, hardware and training.

Exciting opportunities for the Indian companies to partner with Canadian automotive industry not only to have a global foot print for products and processes.