Canada’s auto sector is in the middle of a historic transition. For decades, automotive factories operating in Canada have largely produced vehicles for the United States market. But that model is increasingly vulnerable as global competition intensifies and protectionist policies reshape the industry. The result is clear: between 2014 and 2024, Canada’s vehicle production fell by more than 50 per cent, and our share of global production also halved.
These losses began well before electric vehicle debates or tariff battles. Sales of gasoline and diesel vehicles have been declining since 2017, while global demand for EVs continues to accelerate. EVs will make up more than one-quarter of new car sales globally in 2025 (well over half in China), and are expected to reach 40 per cent of the more than 100 million passenger cars projected to be sold in 2035. Canada has captured little of this growth so far, with almost no domestic EV production.
If Canada wants to protect and grow auto jobs, we need to build the market that will define the next generation of manufacturing. That means creating strong, predictable domestic demand for EVs. Countries that build for themselves are able to scale the expertise, technology, and supply chains that make them competitive exporters. Without that foundation, Canada risks losing not just production, but also the skilled workforce that has long been the backbone of our auto industry.
A strong domestic EV market is also one of the most effective ways to create jobs across the entire value chain. EVs draw on the sectors where Canada already has natural advantages: critical minerals, battery components, vehicle assembly, and maintenance all offer opportunities for high-quality work that builds on existing skills. These are jobs that many autoworkers can transition into with focused training and reskilling, benefitting every region of the country.
Another part of this growing ecosystem is the critical minerals sector, which shows how demand for EVs lifts employment across the full supply chain. EVs and battery storage are expected to drive about half of the global growth in clean-energy technologies over the next two decades. That demand gives industry the certainty it needs to invest in mineral refining and battery startups here in Canada—projects that create skilled, long-term jobs while strengthening our ability to process and supply the materials that power the clean economy.
Getting this right requires deliberate, predictable policy. The Electric Vehicle Availability Standard is the most efficient way to provide the kind of long-term demand signal businesses need to invest in skills, technology, and production. Today, at least 130,000 Canadians are employed directly and indirectly by the EV sector. With current EV policies maintained, that number could reach 600,000 people by 2035.
Workforce planning is central to achieving that growth. Short-term upskilling can help maintain production in existing auto and parts plants. Building out EV charging networks will require targeted recruitment and new training pathways. Auto service workers need access to programs that help them move from internal combustion engine repair into advanced technologies used in electric and hybrid vehicles. When market signals are clear, unions, colleges, and training institutions can design and sequence programs that align with industry needs, so when workers finish training, real job opportunities are available.
These strategies matter even more as traditional auto jobs decline due to global market shifts and U.S. protectionist policies. Canada can respond by building a resilient domestic market that allows us to retool facilities, redeploy skilled workers, and create new opportunities for those displaced by recent plant closures. Workers and communities will also need supportive measures such as workforce-sharing arrangements and employment insurance programs that cover retraining periods.
Diversifying trade and reducing dependence on the U.S. is part of building economic and industrial resilience. Canada already has what we need to succeed: a skilled workforce, abundant critical minerals, and an electricity grid that is among the cleanest in the world. What we need now is the confidence to build at home.
If we get this transition right, the payoff will be real and lasting. A strong domestic EV market will create jobs, anchor investment, and position Canadian workers and industries to take advantage of the global shift already underway.
