Stalled engine: An appreciating dollar will limit industry revenue growth

The Automobile and Light-Duty Motor Vehicle Manufacturing industry in Ontario is composed of businesses that produce a litany of motor vehicles including passenger cars, SUVs, CUVs, vans, minivans, electric cars, sports cars, luxury sedans and pickup trucks, among others. The Canadian automotive sector has been subject to various fluctuations in demand over the five years to 2018 including a collapse in commodity prices over 2015, a concomitant devaluation of the Canadian dollar and a renegotiation of the North American Free Trade Agreement, which is integral to the success of provincial operators. As a result, industry revenue has oscillated wildly, with a 10.0% climb in 2015, a 16.0% drop in 2017 and an anticipated 2.0% spike in more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • The industry has been at the mercy of myriad political and macroeconomic uncertainties
  • Industry Report - Industry Key Buyers Chapter

    •Ontarian manufacturers of motor vehicles operate in a highly concentrated landscape, with the eight largest production facilities located in Ontario.•Collectively, the top five players are expected to generate almost 90.0% of industry revenue in 2018.•Growth in demand for automobiles throughout North America has undergirded industry expansion, although it is centralized among the top players.•Still, this concentration may shift as companies announce plans to move production to less costly areas, chiefly Mexico.•According to Statistics Canada, 62.5% of Ontarian establishments employ fewer than 100 employees, so most facilities are small in scale...purchase to read more.

    Additional Insights for the Automobile & Light-Duty Motor Vehicle Manufacturing in Ontario Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Automobile & Light-Duty Motor Vehicle Manufacturing in Ontario Industry are

  • Establishment of export markets
  • Optimum capacity utilization
  • Ability to negotiate with workers' union
  • IBISWorld analysts also discuss how external factors such as Canadian effective exchange rate index and Demand from new car dealers in the Automobile & Light-Duty Motor Vehicle Manufacturing in Ontario industry impact industry performance..

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    What's in this report

    What is the Automobile & Light-Duty Motor Vehicle Manufacturing in Ontario Industry?

    This industry manufactures passenger cars, light trucks and utility vehicles such as sedans, vans, pickups, sport-utility vehicles (SUVs) and crossover-utility vehicles (CUVs). The industry also manufactures chassis for these vehicles. This industry excludes the manufacturing of motorcycles and heavy-duty vehicles.

    Industry Products
  • Small to large cars
  • Luxury and sports cars
  • Pickup trucks
  • Crossovers
  • SUVs
  • Hybrid and electric cars
  • Industry Activities
  • SUV and CUV
  • Pickup truck and light truck
  • Passenger, sports and luxury car
  • Chassis
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Canadian effective exchange rate index
  • Demand from new car dealers
  • World price of steel
  • Per capita disposable income in Ontario
  • World price of crude oil

  • Current Performance
    Industry Outlook
    Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Automobile & Light-Duty Motor Vehicle Manufacturing in Ontario Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Automobile Wholesaling in Canada
  • New Car Dealers in Canada
  • Car Rental in Canada

  • Key Selling Industries
  • Auto Parts Manufacturing in Canada
  • Automobile Electronics Manufacturing in Canada
  • Automobile Engine & Parts Manufacturing in Canada
  • Battery Manufacturing in Canada
  • Iron & Steel Manufacturing in Canada

  • Products & Services
  • Crossovers
  • Small to large cars
  • Pickup trucks
  • Luxury and sports cars
  • SUVs
  • Other
  • Hybrid and electric cars
  • Chart: Automobile & Light-Duty Motor Vehicle Manufacturing in Ontario Industry Products and Services Segmentation

  • Major Markets
  • Automobile dealerships
  • Automobile distributors
  • Automobile leasing and other
  • Chart: Major Market Segmentation for the Automobile & Light-Duty Motor Vehicle Manufacturing in Ontario Industry

  • Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Automobile & Light-Duty Motor Vehicle Manufacturing in Ontario

  • Basis of Competition
    Barriers to Entry
    General Motors, Ford Motor Company of Canada Limited, Toyota Motor Corporation, Fiat Chrysler Automobiles, Honda Canada Inc.,
  • Table: General Motors - financial performance
  • Table: Ford Motor Company of Canada Limited - financial performance
  • Table: Toyota Motor Corporation - financial performance
  • Table: Fiat Chrysler Automobiles - financial performance
  • Table: Honda Canada Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Automobile & Light-Duty Motor Vehicle Manufacturing in Ontario Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Automobile & Light-Duty Motor Vehicle Manufacturing in Ontario Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Manufacturing GDP of Ontario (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Big Three
  • The three biggest US automakers: General Motors, Ford and Fiat Chrysler
  • Crossover-Utility Vehicle (Cuv)
  • A mid-sized vehicle that combines features of a car with an SUV. They are generally smaller and more fuel efficient that SUVs.
  • Hybrid
  • A car that runs on an electric battery combined with a gasoline engine to be more fuel efficient than a standard car.
  • Sport-Utility-Vehicle (Suv)
  • A rugged automotive vehicle similar to a station wagon but built on a light-truck chassis.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Automobile & Light-Duty Motor Vehicle Manufacturing in Ontario market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Automobile & Light-Duty Motor Vehicle Manufacturing in Ontario:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Automobile & Light-Duty Motor Vehicle Manufacturing in Ontario market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Automobile & Light-Duty Motor Vehicle Manufacturing in Ontario, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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