TORONTO — Toyota and Honda have formed a new lobby group called the Pacific Manufacturing Association of Canada as the country’s automotive industry faces significant challenges.

The two Japanese companies accounted for about three-quarters of vehicles produced in Canada last year, after a series of production pullbacks by the Detroit Three automakers.

The new industry association comes as Canada’s manufacturing sector struggles under tariffs imposed by the United States that are disrupting heavily integrated supply chains built on a free flow of goods across the border.

It also comes as Canada moves to reopen the door to Chinese electric vehicles that are quickly gaining ground in numerous global markets.

PMAC says it will provide a voice for the two automakers during trade negotiations with the U.S. and in federal automotive strategy consultations, as well as on policy issues like electric vehicles, greenhouse gas emissions and regulatory modernization.

The association includes Honda Canada Inc. and Toyota Canada Inc., as well as Honda of Canada Mfg. and Toyota Motor Manufacturing Canada, which run their respective assembly plants.

This report by The Canadian Press was first published April 15, 2026.

The Canadian Press