Canada hits accelerate for auto manufacturing

Fiscal measures include tax credits and capital cost allowances.

Canada is future-proofing its car manufacturing sector through a new automotive strategy.

"Recognising that the future of the automotive industry is electrified and connected, the Government of Canada is prioritising the development of the full value chain for next‑generation vehicles," the government said when it announced "deliberate and strategic" investments for the sector.

These investments will focus on clean electricity and energy infrastructure that the cars of the future will need; critical minerals, which include the materials used for battery production; tax credits and accelerated capital cost allowances for manufacturers; and technologies that are transforming advanced manufacturing and mobility.

"Our strategy is about securing and growing the industry that supports 500,000 Canadian jobs, whilst positioning our businesses and workers to compete, innovate, and export in a world where the future of autos is electric, connected, and globally diversified," the government stated.

"This is how Canada will develop, build, and sell the cars of the future."

Under its automotive strategy, Canada will accelerate investment in the auto manufacturing industry; rationalise emission reductions policies; strengthen domestic demand by making electric vehicles more affordable and reliable; establish a comprehensive trade regime to drive competitiveness; and protect Canadian auto workers and businesses.

"Canada's automotive sector is building the vehicles of today, and it will help build the vehicles of tomorrow," the government declared.