Even though the Canadian auto market is about ten times smaller than the U.S. market, it could still tell us a lot about the U.S. market and the overall global market. Like much of the world, the Canadians have a penchant for small cars. This must be why Mazda and Hyundai do so well with buyers. Looking at the chart, Hyundai is a very strong player. In fact, with Kia, it is the fifth largest player in the market.

Together, GM, Ford, and Toyota, with their multiple brands almost take up half of the Canadian market. According to many analysts, the global market is becoming so competitive that most automakers will simply not be able to operate alone. That’s why we’ve seen many mergers and buyouts this past few years. The chart further supports their views – lone automakers such as Mazda and Mitsubishi are grouped in the “other” category. An advantage the major players have is their ability to cut costs by sharing technology and production capabilities (e.g. Toyota and GM have teamed up to manufacture the Matrix and Vibe).

So from the analysts and from the chart, we should expect more mergers between automakers. Relatively small players like Mazda will likely end up teaming up with another player. Mitsubishi…well, that automaker is pretty much on life support in the western markets.

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