Top Canadian Automotive Manufacturing Government Funding Programs

Canada’s automotive manufacturing sector is a critical driver of economic growth, innovation, and technological advancement. To help businesses in this sector remain competitive and thrive in the global marketplace, the federal and provincial governments offer a variety of funding programs.  

Automotive manufacturing government programs can support eligible businesses across Canada with everything from technology adoption and research and development (R&D) to export growth and sustainability initiatives.  

In this blog, we outline the top Canadian automotive manufacturing government funding programs that your business can leverage. 

Canada’s Top Automotive Manufacturing Funding Programs 

Ontario Automotive Modernization Program 

The Ontario Automotive Modernization Program (O-AMP) is a provincial government funding program aimed at helping automotive parts suppliers modernize their operations. This program offers up to 50% of eligible project costs, to a maximum of $150,000 per project. O-AMP supports initiatives such as: 

• Adopting new technologies 

• Improving operational efficiency 

• Enhancing workforce skills by fostering innovation and process improvements, O-AMP can help enable businesses remain competitive in an increasingly digital manufacturing landscape. 

Ontario Vehicle Innovation Network 

The Ontario Vehicle Innovation Network (OVIN) is a key initiative for automotive businesses in Ontario focused on innovation and technology development. Through targeted funding programs such as the OVIN Technology Pilot Zones program, OVIN supports projects in areas such as: 

• Connected and autonomous vehicles (CAV) 

• Electric vehicle (EV) technologies 

• Smart mobility solutions 

Funding through OVIN can help automotive companies develop cutting-edge technologies, collaborate with academic and industry partners, and bring innovative products to market. 

Zero Emission Vehicle Infrastructure Program 

Canada’s federal Zero Emission Vehicle Infrastructure Program (ZEVIP) is designed to accelerate the adoption of electric vehicles by supporting the deployment of charging and refueling infrastructure. ZEVIP provides funding for projects related, but not limited to: 

• Public and workplace EV charging stations 

• Fleet charging solutions 

• Hydrogen refueling stations 

Eligible businesses can receive up to 50% of total project costs, with maximum contributions ranging from $5,000 to $5 million, depending on the project scope. The ZEVIP program aligns with Canada’s goal of achieving net-zero emissions by 2050. 

Scientific Research and Experimental Development Tax Credit 

The Scientific Research and Experimental Development (SR&ED) tax credit program encourages innovation by offering tax credits for eligible R&D activities. Automotive manufacturers can claim expenditures related, but not limited to: 

• Developing or improving products, processes, or technologies 

• Experimenting with new materials or manufacturing methods 

• Conducting feasibility studies 

Businesses can receive tax credits of up to 35% for eligible R&D costs, making SR&ED one of Canada’s most impactful funding mechanisms for fostering innovation. 

CanExport SMEs Program 

The CanExport SMEs Program supports Canadian businesses looking to expand into international markets. Automotive manufacturers can leverage this program to: 

• Attend international trade shows and business development events 

• Conduct market research and feasibility studies 

• Develop market-entry strategies 

Eligible businesses can receive funding for up to 50% of eligible costs, with a maximum contribution of $50,000 per project. This program is ideal for companies aiming to grow their global footprint and increase export revenues. 

Why Access Canadian Government Funding? 

Accessing government funding programs can help automotive manufacturers: 

• Mitigate financial risks associated with innovation and expansion 

• Accelerate the adoption of advanced technologies 

• Gain a competitive edge in the global market 

By taking advantage of the funding programs listed in this blog, automotive manufacturing businesses can invest in their future and contribute to Canada’s leadership in the automotive sector. For more insights into how to optimize your funding strategy, check out our guide to accelerating automotive innovation. 

If you’re ready to explore funding opportunities, our team of Canada’s leading government funding experts can help you navigate the application process and maximize your funding potential. Contact us today!