Key Takeaways
- 72% of Canadians want their vehicle assembled in Canada, signaling support for domestic capacity and jobs
- 61% of Canadians plan to buy a new car within the next five years, with price and brand trust being the most important considerations
- 76% of Canadians are worried that ongoing trade tensions and tariffs will make new vehicles unaffordable
- 55% of Canadians believe Canada could become a global leader in electric vehicles (EVs) to reduce its reliance on the U.S. auto industry
- 52% of Canadians expressed a desire for governments to prioritize becoming a leader in EVs and battery production
Introduction to the Survey
A recent survey conducted by KPMG Canada has found that many Canadians are concerned about the uncertainty in the automotive industry, with 76% of respondents worried that ongoing trade tensions and tariffs will make new vehicles unaffordable. The survey also found that 61% of Canadians plan to buy a new car within the next five years, with price and brand trust being the most important considerations. Additionally, 72% of Canadians want their vehicle assembled in Canada, signaling support for domestic capacity and jobs. This desire for domestically assembled vehicles is likely driven by the desire to support the Canadian economy and create jobs.
Support for Domestic Capacity
The survey found that Canadians are increasingly concerned about where their vehicles are built, with 72% saying it’s very or somewhat important to them that their vehicle is assembled or built in Canada. This support for domestic capacity is not limited to just vehicle assembly, with 37% of respondents wanting funding directed to Canada’s auto parts supply industry to protect Canadian manufacturing and supply chain stability. Furthermore, 58% of Canadians support diversification into defence manufacturing, which could help to create new jobs and stimulate economic growth. These findings suggest that Canadians are looking for a more self-sufficient automotive industry, one that is less reliant on foreign manufacturers and more focused on creating jobs and economic growth at home.
Impact of Trade Tensions
The survey also found that Canadians are concerned about the impact of trade tensions on the automotive industry, with 76% of respondents worried that ongoing trade tensions and tariffs will make new vehicles unaffordable. This concern is likely driven by the fact that the Canada-U.S.-Mexico Agreement (CUSMA) is set for review next year, and Canadians are worried that changes to the agreement could lead to higher vehicle prices. In fact, 72% of Canadians worry that vehicle prices will rise if Canada’s industry loses protection under the agreement. These findings suggest that Canadians are looking for a more stable and predictable trade environment, one that will allow them to purchase vehicles at affordable prices.
Opportunities for Electric Vehicles
Despite the challenges facing the automotive industry, the survey found that Canadians are optimistic about the potential for electric vehicles (EVs) to reduce the country’s reliance on the U.S. auto industry. 55% of Canadians believe that Canada could become a global leader in EVs, and 52% expressed a desire for governments to prioritize becoming a leader in EVs and battery production. This desire for EV leadership is likely driven by the fact that EVs offer a number of benefits, including reduced greenhouse gas emissions and lower operating costs. Additionally, the development of a domestic EV industry could create new jobs and stimulate economic growth, which would be beneficial for the Canadian economy.
Conclusion
In conclusion, the KPMG Canada survey found that Canadians are concerned about the uncertainty in the automotive industry, and are looking for a more self-sufficient industry that is less reliant on foreign manufacturers. The survey also found that Canadians are optimistic about the potential for electric vehicles to reduce the country’s reliance on the U.S. auto industry, and are looking for governments to prioritize becoming a leader in EVs and battery production. Overall, the survey suggests that Canadians are looking for a more stable and predictable trade environment, one that will allow them to purchase vehicles at affordable prices, and are eager to see the development of a domestic EV industry that will create jobs and stimulate economic growth. By prioritizing domestic capacity, reducing reliance on foreign manufacturers, and investing in EVs and battery production, the Canadian automotive industry can create a brighter future for itself and for the country as a whole.
Recommendations for the Future
Based on the findings of the survey, it is clear that Canadians are looking for a more self-sufficient automotive industry that is less reliant on foreign manufacturers. To achieve this, the Canadian government should prioritize investments in domestic manufacturing, including the development of a domestic EV industry. This could involve providing financial support and incentives to companies that are investing in EV production, as well as investing in the development of a robust charging infrastructure. Additionally, the government should work to reduce trade tensions and create a more stable and predictable trade environment, which would allow Canadians to purchase vehicles at affordable prices. By taking these steps, the Canadian automotive industry can create a brighter future for itself and for the country as a whole.