Posted on 14 Jul 2025
Japanese giants Honda and Toyota currently account for 70% of Canada’s total vehicle production and exports, according to an industry body.
Global Automakers of Canada (GAC), an association of foreign producers including BMW, Honda, Toyota, and VinFast, estimates that international automakers with operations in the country assembled a total of 957,334 light-duty vehicles in 2024. This represents a 6% increase year-on-year, and 60% of all vehicles sold in the same period.
These carmakers contributed CAD 24.9 billion ($21 billion) to the country’s GDP and CAD 10.6 billion in annual government revenues last year, supporting 220,000 direct and indirect jobs.
Toyota was the first company to produce battery electric vehicles (BEVs) at a commercial scale in Canada, though it has now switched its focus to hybrid electric vehicles (HEVs), Kallanish understands. Last year, HEVs accounted for around a third of Toyota’s and Honda’s combined vehicle production, and 18% of all vehicle production in the North American country, according to GAC.
Canada has been attracting more investments in the EV space, but measures by the Trump administration seem to be getting in the way of these projects.
Honda had committed CAD 15 billion to boost its Canadian capacity to 240,000 EVs/year and 36 gigawatt-hours of batteries. Yet, it has recently announced delays amid US tariffs and macroeconomic uncertainty. Volkswagen and PowerCo are planning a CAD 7 billion gigafactory in Ontario, with first production scheduled for 2027. Although construction is yet to fully commence, the company says it’s on track to commence production as planned.
Source:Kallanish
