Canadian Automotive Industry Under the Influence of Covid-19 2020-12-24

Since 2010, Canada's annual automotive production has been maintained at more than 2 million units, accounting for about 17.0% of the North American Free Trade Area (NAFTA). In the following five years (from 2011 to 2016), NAFTA's overall automotive production increased year by year, while Canada's share gradually declined. Only 1.92 million units will be produced in 2019, accounting for only 11.4% of NAFTA, which shows the Canadian vehicle production has been transferred to the United States and Mexico. 

Start in the second quarter of 2020, the outbreak of Covid-19 affects the automotive industry. Auto production capacity is estimated to decrease by 20%. The output of Canada is estimated to be about 1.53 million units, and that of NAFTA is estimated to be 13.5 million units.

Canada's automotive industry is facing transformation. In addition to reducing vehicle production lines and human resources, traditional car manufacturers also use the advantages of artificial intelligence and networking related units in the Great Lakes Region for research intensive research, and set up R & D centers.

Moreover, the top three suppliers of Tier 1 in Canada in 2019 are Megna, Linamar and Martinrea, which used to supply North American car factories. In recent years, they have actively expanded other regions, including Europe and Asia, to reduce their dependence on the North American market.

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