Automotive sector has a significant role in the Canadian domestic economy. In fact, automotive manufacturing is on of the largest industries in the country.
According to official sources, the automotive industry in Canada is responsible for the 10 % of the manufacturing GDP (Gross Domestic Product) and the 23% of the manufacturing trade.
The automotive industry in Canada is mainly based in Ontario, although there are also many factories working in Manitoba, British Columbia and Quebec.
Thru approximately 1085 companies with 1275 facilities, the annual production of vehicles in Canada is estimated at 2.37 million, most of which (85%) are exported. As a consequence, the sector produces 107.3 billion is factory revenues.
The impact of the automotive industry in Canada’s labor market is massive, providing jobs for more than 500.000 persons in the different fields related to the manufacturing and selling processes of the sector.
Automotive manufacturing in Canada
The automotive industry involves different sectors. Design, manufacture, sales and aftersales are the main subdivisions of this industry that is one of the biggest by revenues.
In Canada, passenger vehicles are produced, as well as buses and trucks. Auto parts, trailers and truck bodies are also manufactured locally.
Some of the leading companies that have installed in Canada in order to work on the automotive sectors are Ford, Toyota, Honda, General Motors, Volvo, Fiat, Mercedes Benz. Also, companies such as Apple, Goodyear, Johnson Electric, Bridgestone, KSR International, Laval Tool, Lear, Linamar, Magna International, Martinrea, Ballard Power, Canadian Autoparts Toyota, D-Wave, Loop Energy,Mercedes-Benz Fuel Cell Plant, Mojio, among others have chosen Canada as the perfect place to develop.
The low costs structures and taxes, along with a strong labor quality and technology, make Canada a very attractive destination for automotive investors.
Furthermore, the supply base, which is a critical issue for the automotive industry, has enough capability to secure high quality supplies for almost every item.
Automotive industry innovations
Many industries are going through a massive transformation associated with new technological developments, such as Artificial Intelligence, Big Data and the Internet of Things.
The automotive industry is also experimenting many changes that will probably end up with the development of a future car that will be significantly different from what we know today.
Autonomous vehicles with self-driving capabilities are completely changing they way we think about cars and the legal frame created to regulate the use of them. Also, the electrification of cars is prompting the development of the battery industry and charging infrastructure.
Also, vehicle-related information collected through Big Data methods are creating a new way of dealing with maintenance, supply chains and other fields. In addition to connectivity functions that allows drivers to keep track of their vehicle, simplify insurance issues and sharing relevant data about the car’s systems.
The development of the technological industry in Canada is completely compatible with automotive industry innovations. In fact, the Canadian experience in software engineering is vital in order to develop the car of the future.
Even though the manufacturing sector is the biggest one within the automotive industry, after-sale services are also a key sector.
Many people emphasize the importance of marketing and sales, forgetting about how important is to offer an excellent after-sales experience. In effect, customer satisfaction and brand loyalty depend very much and the customers experience with after-sales services.
Furthermore, after-sales secure more profits to the industry, since customers will require maintenance, repairment and part replacement through time.
When a company provides a good after-sales service for their customers, it is also creating loyalty, because probably the same customer will come back to buy a new car when he or she thinks it is the time.
The production of tires and car parts it is vital for the after-sales service, since it secures enough supplies for replacements. The Canadian automotive industry is big enough to allow companies provide the best after-sales customer service, with many key resources at hand.
One example is the development of internet sites in which companies can find all the information about car maintenance, as well as links to the main providers across the country. This is a great tool for B2B communications, securing the best connection with the different areas of the sector.