Canada’s Auto Industry Faces Ongoing Decline Despite Signs of Stability
Canada’s vehicle assembly industry has been declining for years. Back in 2000, production was about 2.9 million vehicles, but it has steadily dropped since then. Recently, new challenges made things worse, including tensions with the U.S. over trade and weaker demand for electric vehicles.
In 2025, production fell slightly again, reaching 1.2 million vehicles, down from 1.3 million in 2024. Despite the decline, some automakers are still performing well. Toyota and Honda continue to invest in Canada and remain strong. Stellantis increased production, and while its Brampton plant’s future is unclear, the Windsor plant is improving with a new shift added in early 2026. Ford had low production in 2025, but upgrades at its Oakville plant could lead to better output in the near future.
Overall, the industry is still under pressure. Experts say Canada needs stronger government support and major changes to improve productivity. Without these efforts, it may struggle to stay competitive in the long run.
Gas Prices Climb as Seasonal Trends and Global Tensions Add Pressure
Gas prices have increased for the fourth week in a row, reaching a national average of $2.94 per gallon as of early March 2026. That’s up from last month but still lower than a year ago.
Used Vehicle Prices Rise as Strong Demand Continues
Used vehicle prices continued to climb in early March, with the Manheim index up slightly from February and more than 5% higher than last year. The market is holding strong during its usual busy season.