{"id":1819,"date":"2022-08-30T18:49:05","date_gmt":"2022-08-30T18:49:05","guid":{"rendered":"https:\/\/leyton.majjane.agency\/ca\/post\/the-changing-automotive-industry\/"},"modified":"2022-08-30T18:49:05","modified_gmt":"2022-08-30T18:49:05","slug":"the-changing-automotive-industry","status":"publish","type":"article","link":"https:\/\/leyton.com\/ca\/en\/insights\/articles\/the-changing-automotive-industry\/","title":{"rendered":"The Changing Automotive Industry"},"content":{"rendered":"

Canada is the eleventh largest automotive producer in the world and the seventh largest auto exporter.  In 2020, the industry produced 1.4 million vehicles with exports totaling $42.9 billion, making it one of the largest industry sectors in the country, contributing over $16 billion to the GDP. The industry produces passenger vehicles, trucks and buses, auto parts and systems, truck bodies and trailers, machines, tools and dies and molds (MTDM<\/em>).  As such, the industry employs more than 125,000 people in vehicle assembly and auto parts manufacturing<\/a>, and another 380,000 in distribution and aftermarket sales and service.<\/strong><\/p>\n

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The industry was hard hit by the pandemic as the disruption in Chinese parts exports escalated into large scale manufacturing interruptions worldwide. The pandemic caused factories to close, but this was compounded by a surge in chip demand<\/strong> for mobile devices in anticipation of the roll out of 5G technology. The development in the communication industry boomed<\/strong>, but it negatively impacted chip availability for automotive and industrial applications. <\/p>\n

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In 2021, the industry experienced some recovery with total sales rising by approximately 7% year-over-year<\/strong> as demand picked up and semiconductor revenue began to grow. But new surges in demand such as those brought about by changing consumer habits, together with challenges in chip capacity allocation have resulted in a global chip shortage in 2021<\/strong>.  And, Canadian vehicle production dropped across all segments, despite an increasing demand for cars and trucks.  <\/p>\n

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The demand has continued to grow but there is a shift in the industry with an accelerated demand for new technologies, sustainability policies, and increasing demand for electric vehicles. These forces are giving rise to four disruptive technology-driven trends in the automotive sector:<\/strong><\/p>\n

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