Canada Unveils New Auto Strategy to Strengthen Manufacturing and Boost Global Competitiveness

The Honourable Maninder Sidhu, Minister of International Trade, and the Honourable Ruby Sahota, Secretary of State for Combating Crime, highlighted how Canada’s new auto strategy will strengthen domestic manufacturing, protect workers, and help Canadian auto companies grow and compete in global markets.

The federal government says it is focused on taking action in areas within its control, including the implementation of a new industrial strategy aimed at building a more resilient economy. Canada is working to reduce its reliance on a single trade partner by strengthening domestic industries and expanding trade relationships with a broader range of international partners. The goal is to create a stronger, more sustainable, and more independent economy that is better positioned to withstand global economic shocks.

“Canada’s auto industry has long been a cornerstone of our economy, and this new strategy ensures it remains strong, competitive, and positioned for the future. By supporting Canadian manufacturers, accelerating electric vehicle adoption, and opening doors to new international markets, we are helping our auto sector grow, create good jobs, and build the next generation of vehicles right here at home.”HonourableManinder Sidhu, Minister of International Trade.

“The Government of Canada knows the auto industry is vital to our economy, especially here in Brampton and across Ontario. Our auto strategy supports vehicles made in Canada and uses Canada’s strengths to build the cars of tomorrow. We’re investing in clean energy, advanced manufacturing, and cutting‑edge technologies, to lay the foundation for a stronger, more sustainable economy that Canadians can count on for years to come.” – The Honourable Ruby Sahota, Secretary of State for Combatting Crime and Member of Parliament for Brampton North—Caledon

As part of this broader transformation, the government is also launching a national electricity strategy designed to leverage Canada’s energy advantage. The strategy aims to provide Canadians with clean, affordable, and reliable power while supporting economic growth and industrial development.

These initiatives present a significant opportunity to reshape Canada’s auto sector, particularly by reducing dependence on the U.S. market and gas-powered vehicles. To support this shift, the government has introduced a new auto strategy that incentivises the production of vehicles made in Canada and leverages the country’s world-class expertise in artificial intelligence and advanced technologies.

Officials say the strategy aims to position Canada as a global leader in electric vehicle production, while ensuring long-term growth, innovation, and good-paying jobs throughout the automotive industry. Within five years, EV sales are projected to reach nearly 40% of global car sales. Canada’s auto sector supports over 500,000 workers, contributes over $16 billion annually to Canada’s GDP, and is one of the country’s largest export industries. In 2025, Canada produced over 1.2 million passenger vehicles.