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Automotive Innovation Fund (AIF) | Innovation, Science and Economic Development Canada (ISED)




The Automotive Innovation Fund (AIF) provides repayable and non-repayable contributions to automotive companies in support of strategic, large-scale research and development projects in the automotive sector to build innovative, greener and more fuel-efficient vehicles. This will help Canada leverage its ability to maintain and grow its critical mass of automotive manufacturers, parts suppliers, and R&D and technology clusters in order to enhance a strong innovative and knowledge-based economy. The objectives of the AIF are to:

  • Build automotive research and development (R&D) capacity in Canada and secure knowledge-based jobs through the growth of a strong automotive industry
  • Enhance the government’s inclusive innovation, science and technology (S&T) and environmental agendas
  • Support the development and/or implementation of innovative, fuel efficient technologies or processes
  • Promote long-term economic benefit to Canada including significant job creation/retention
  • Serve as catalyst for further private sector investments to foster Canadian competitiveness, including investments in production equipment or processes and next-generation manufacturing technologies

Eligible Applicants

Eligible recipients are corporations incorporated pursuant to the laws of Canada carrying on business in Canada with proposals for investments in Canada valued at more than $75 million until March 31, 2021, for vehicle or powertrain assembly operations associated with significant automotive innovation and R&D initiatives. Automotive innovation and R&D initiatives other than vehicle or powertrain assembly are also eligible provided they meet the $75 million threshold.

Eligible Expenses

  • New product development
  • Leading edge engineering and design, prototype development
  • Advanced product testing with a view to ensuring cleaner, more efficient automotive performance and reduced greenhouse gases (GHGs)
  • The development of new production methods and process technologies, including advanced flexible manufacturing techniques
  • New or expanded facilities that generate significant economic benefits, including employment
  • Substantive investments in new flexible manufacturing processes
  • Introduction of other transformative new production technologies to substantially increase productivity and efficiency (e.g., robotics, advanced IT systems, etc.)

Deadline Date

  Currently closed. Future deadline to be determined.


Contact Name: Automotive Innovation Fund

Phone Number: 343-291-3555


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