This report examines the short-and medium-term economic and profitability outlook for Canada’s motor vehicle and parts manufacturing industry.
Document Highlights
The rise of COVID-19 variants, in addition to global parts shortages, means that it will take time for the motor vehicle and parts industry to reach its pre-pandemic levels.
After falling 24 per cent in 2020, real GDP in the industry will continue to decline a further 4.9 per cent this year due to global supply chain challenges. However, we forecast the industry will grow by 9.1 per cent in 2022, followed by a stronger recovery in 2023 with a growth of 17.5 per cent as we start moving past pandemic-related challenges.
With the continuous rise of automation, especially in the motor vehicle and parts manufacturing industry, we do not expect significant growth in employment rates in the short to medium term.
