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Canadian Automotive Supplier Capability and EV Value
Chain Analysis.



Jayson Myers   November 29, 2023

Canada is one of the many countries committed to transitioning from internal combustion engines to electric-powered, zero-emission vehicles by 2035.


The internationally competitive nature of this market requires Canada to act quickly and strategically. Global market forecasts suggest that electric vehicles (EVs) will account for almost 11 percent of global sales by 2025 and up to 50 percent by 2030. Canada has the opportunity to be a major global player in this transformation and take advantage of all the economic spin-offs that would entail.

Gasoline and diesel-powered internal combustion engines (ICEs) have historically been the powertrain of choice for passenger and commercial vehicles. However, due to stricter regulation, increased competition, and changing customer demand, many original equipment manufacturers (OEMs) have recently reconsidered their current vehicle and powertrain offerings.

Emission regulations set by national and local authorities, tighter fleet CO2-emission standards, zero-emission vehicle (ZEV) mandates, and climate targets such as the Paris Agreement are the main drivers forcing the automotive industry to rethink how vehicles are powered. The new blend of powertrain technologies consists of full and mild hybrids, plug-in hybrids, battery electric vehicles, and fuel cell electric vehicles (FCEV). This transformation presents obstacles and opportunities not only for OEMs but also for powertrain and component suppliers.

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