Reverse gears: Operators are expected to continue moving operations abroad, hindering revenue growth

Over the five years to 2018, the Car and Automobile Manufacturing industry in Canada has struggled to recover as many automakers have moved operations abroad. Dissuaded by high labour costs in Canada, many international automakers have refocused investments toward Mexico and the United States. As a result, output has fallen from Canada's biggest car producers, Toyota, General Motors, Honda and Fiat Chrysler, with remaining operations increasingly focused on vehicle production that fall outside of the purview of the industry. Although demand for vehicles has rebounded, industry operators have been gradually scaling back operations domestically in favour of manufacturing in neighbouring more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • Operators have been scaling back operations domestically in favour of manufacturing in neighbouring countries
  • Increased production in the United States and Mexico has slowed export growth from Canadian facilities
  • As trade barriers fall, import penetration will claim much of the new demand
  • Industry Report - Industry Key Buyers Chapter

    The Car and Automobile Manufacturing industry in Canada carries a high level of market share concentration, with the top six operators accounting for an estimated 78.4% of industry revenue in 2018, two of which, General Motors (GM) and Fiat Chrysler Automobiles (FCA), control 57.4% of industry demand. The industry landscape is dominated by several key automakers that compete on a global level, including the US automakers GM and FCA, as well as Japan's Toyota and Honda. Overall, the level of industry concentration has increased during the five-year period as these global companies grow despite tepid expansion in the domestic industry.Ultimately, automakers sometimes switch production between small and midsized cars, which are industry-relevant, and SUVs and vans, which are not. As ...purchase to read more.

    Additional Insights for the Car & Automobile Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Car & Automobile Manufacturing Industry are

  • Establishment of export markets
  • Optimum capacity utilization
  • Ability to negotiate with workers' union
  • IBISWorld analysts also discuss how external factors such as Canadian effective exchange rate index and Demand from new car dealers in the Car & Automobile Manufacturing industry impact industry performance..

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    What's in this report

    What is the Car & Automobile Manufacturing Industry?

    Companies in this industry manufacture cars and automobile chassis. These companies, referred to as automakers, typically produce cars, including electric cars, in assembly plants. The manufacture of light trucks (e.g. vans, pickups and SUVs) and heavy trucks is excluded from this industry. In addition, crossover vehicles (CUVs) are excluded from this industry as well, despite being built on car chassis.

    Industry Products
  • Compact and subcompact cars
  • Midsize sedans
  • Full-size sedans
  • Sports cars
  • Luxury cars
  • Hybrid and electric vehicles
  • Industry Activities
  • Automobile assembly
  • Automobile chassis
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Canadian effective exchange rate index
  • Demand from new car dealers
  • World price of steel
  • Per capita disposable income
  • World price of crude oil

  • Current Performance
  • Reliance on the United States
  • Labour woes and profit fluctuations
  • Chart: Revenue Growth

  • Industry Outlook
  • International trade
  • Going green
  • Industry landscape
  • Table: Car & Automobile Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Car & Automobile Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Automobile Wholesaling in Canada
  • New Car Dealers in Canada
  • Car Rental in Canada

  • Key Selling Industries
  • Auto Parts Manufacturing in Canada
  • Automobile Electronics Manufacturing in Canada
  • Automobile Engine & Parts Manufacturing in Canada
  • Battery Manufacturing in Canada
  • Iron & Steel Manufacturing in Canada

  • Products & Services
  • Compact and subcompact cars
  • Midsize sedans
  • Luxury cars
  • Sports cars
  • Full-size sedans
  • Hybrid and electric vehicles
  • Chart: Car & Automobile Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Exports
  • Automobile Dealerships
  • Wholesalers and distributors
  • Chart: Major Market Segmentation for the Car & Automobile Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Depreciation and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Car & Automobile Manufacturing

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Car & Automobile Manufacturing Industry

  • Industry Globalization
    General Motors Company, Fiat Chrysler Automobiles, Toyota Motor Corporation, Honda Canada Inc.,
  • Table: General Motors Company - financial performance
  • Table: Fiat Chrysler Automobiles - financial performance
  • Table: Toyota Motor Corporation - financial performance
  • Table: Honda Canada Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Car & Automobile Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Car & Automobile Manufacturing Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • Average price of a new passenger car (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • A car that runs on an electric battery combined with a gasoline engine to be more fuel efficient than a standard car.
  • Sport-Utility Vehicle (Suv)
  • A rugged automotive vehicle similar to a station wagon but built on a light-truck chassis.
  • The Big Three
  • The three biggest US automakers: General Motors, Ford and Chrysler.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Car & Automobile Manufacturing market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Car & Automobile Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Car & Automobile Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Car & Automobile Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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