Canadian light vehicle production declined slightly in 2025, as longstanding structural challenges were compounded by new short-term pressures, according to DesRosiers Automotive Consultants.
Total output fell to 1.2 million units, down from 1.3 million in 2024 — a fraction of the 2.9 million units assembled in 2000. The long-term downward trend reflects a steady erosion of Canada’s share of North American vehicle production.
Recent developments added further strain. A more protectionist trade stance from the United States and a pullback in electric vehicle demand introduced additional uncertainty for manufacturers operating in Canada.
“The auto assembly sector in Canada continues to face ongoing challenges,” said Andrew King, Managing Partner at DAC, in a statement. “Nevertheless, the potential for auto manufacturing in Canada remains strong and it is essential that all levels of government continue their efforts to support the industry.”
Despite the overall decline, some automakers posted stable or improving results. Toyota remained the country’s top producer, while Honda also maintained strong output, continuing their long-standing commitments to Canadian manufacturing.
Stellantis recorded increased volume in 2025. While questions remain around the future of its Brampton facility, the outlook for Windsor improved, with a third shift launched Feb. 17, 2026 — a move expected to support near-term production gains.
Ford, meanwhile, reported limited production as retooling continues at its Oakville plant, positioning the facility for future output growth once upgrades are complete.
King said steps “must be taken to address Canada’s broader overall long-term decline in productivity, with urgent structural reform required if the country’s industrial base as a whole is to have any hope of remaining competitive.”
