Canada is a powerhouse in the automotive industry. Our automotive sector accounts for approximately 10% of the country’s manufacturing GDP, as of 2024, and a significant portion of all manufacturing trade.
With zero-emission goals and forward-looking initiatives like Project Arrow, Canada is at the front of the pack in sustainable automotive technology.
Our robust manufacturing supply chain enables seamless collaboration across different sectors. Companies like Mercedes-Benz, Linamar, Toyota and Dana are key players that are driving progress and technological advancements in our thriving automotive ecosystem.
With 125,000 direct jobs across Canada, 72% of which are in Ontario, the country’s most populous province, we attract manufacturing expertise and skilled professionals from around the world. Ontario is also home to 46 auto-focused programs across its universities and colleges, and 400+ companies working in autonomous development and smart mobility. This talent influx further positions Canada as a major player on the international stage.
Ontario’s automotive corridor runs from Windsor to Ottawa, Ontario.
Key Takeaways
- Trade headwinds are transforming the automotive industry in Canada faster than ever, but Waterloo’s automotive sector remains strong
- Several major OEMs, including Toyota, Ford and Volkswagen, continue produce vehicles in Ontario’s automotive industry for its R&D capabilities, top talent and market access
- The Ontario Automotive Corridor is a key area that streamlines automotive innovation, stretching from Windsor to Toronto
- Waterloo is a top location for automotive innovation, thanks to our crop of talent, strategic location and unique R&D opportunities
Leading auto OEMs located in Canada
Ontario is home to several Original Equipment Manufacturers (OEMs) that have a Canadian presence, reflecting our region’s considerable influence within the industry – both domestically and internationally. Let’s explore each of their contributions to the future of Canada’s automotive industry.
Toyota
As Canada’s largest automotive manufacturer, Toyota has established a significant presence, particularly in Waterloo Region. As North America’s top seller of non-pickup vehicles, Toyota’s Cambridge and Woodstock facilities employ 8,500 people.
The company’s $1.4B investment in Ontario in 2018 and its decision to produce Lexus NX crossover and Lexus NX hybrid vehicles in our community emphasize their confidence in Canada – especially since these models were previously only made in Japan.
In 2026, Toyota renewed its commitment to the Ontario automotive industry. The company is now producing the all-new 6th-generation RAV4 SUVs, which Tim Hollander, President of Toyota Motor Manufacturing Canada, said “is a significant demonstration of Toyota’s confidence in our people, our plants, and our manufacturing ecosystem.”
Ford
With its main facility in Oakville, Ontario, along with additional sites in Ottawa and Waterloo, Ford is no stranger to Canada’s automotive scene. Employing approximately 7,000 Canadians, Ford is tackling trade challenges head-on, pivoting to focus on hybrids and extended-range vehicles.
Volkswagen
Volkswagen is advancing its EV strategy with plans for a massive cell factory in St. Thomas, Ontario, which started construction in 2025. PowerCo SE, VW’s battery company, will build its largest gigafactory in Canada, aiming to produce up to 90 gigawatt hours per year with a $7B investment by 2030. The facility will create up to 3,000 highly skilled jobs and tens of thousands more indirectly. Production is set to begin in 2027.
Honda
Located in Alliston, Ontario, Honda’s manufacturing operations are known for producing popular models such as the Honda Civic and Honda CR-V. The company employs around 4,200 people, highlighting its impact on the local economy and the automotive sector. In 2024, Honda was Canada’s second-largest auto manufacturer by volume.
Why automotive companies locate here
Ontario is home to a rich ecosystem of automotive manufacturers and research centres, serving international supply and demand for over a century. Located along Canada’s 401 highway, the Ontario Automotive Corridor is a key area that streamlines automotive innovation, stretching from Windsor to Toronto.
Waterloo remains a central hub within this corridor, recognized as one of the top automotive clusters in North America. Home to dozens of top-tier research institutions and automotive and mobility companies, Waterloo is one of the reasons this area has garnered worldwide attention and attracted some of the world’s largest OEMs.
So, what makes Waterloo Region unique?
1. Ecosystem
Waterloo champions growth and innovation with a dynamic mix of research centres, automotive manufacturers and tech companies. Its strategic location and industry diversity make it a leading hub for innovation and collaboration.
2. Talent
Our community is home to three major post-secondary institutions – the University of Waterloo, Wilfrid Laurier University and Conestoga College – which have unique manufacturing-oriented strengths in engineering, supply chain management and skilled labour. Their sizeable co-operative education programs mean most graduates are workforce-ready.
3. R&D opportunities
Waterloo’s leading research centres remain at the automotive innovation forefront, such as the Waterloo Centre for Automotive Research (WatCar) and the Autonomous Vehicle Research and Intelligence Lab (AVRIL), driving progress in technology and industry practices.
Canada has a long history of automotive manufacturing and innovation, making it a top destination for car companies. Regions like Waterloo play a big part in this success. With a strong ecosystem, top engineering talent and cutting-edge R&D opportunities, Canada remains an ideal destination for the automotive leaders of tomorrow.
Head to your next destination
Automotive companies are in the fast lane to Waterloo. Will you join them? Contact Gavin to get started.
