Canada's New Arrow EV Car Is Shaking The Entire EV Industry

Fusion Core

Fusion Core

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Canada just unveiled its first real attempt at building its own car — and Project Arrow's new Vector and Borealis prototypes could change how the country's entire automotive industry works.

For decades, Canada built millions of vehicles a year without ever building a truly Canadian one — badges, brands, and ownership always belonged elsewhere. At the 2026 Canadian International AutoShow in Toronto, the Automotive Parts Manufacturers' Association revealed the next phase of Project Arrow, bringing together Canadian suppliers, universities (including Ontario Tech University), and technology companies around a vehicle platform designed and owned in Canada.

The stakes go beyond one car. More than 90% of Canadian-made vehicles are exported to the U.S., and in 2025 Washington introduced a 25% tariff framework on Canadian-made vehicles. In response, Canada's 2026 auto strategy included up to $3 billion from the Strategic Response Fund, $100 million through the Regional Tariff Response Initiative, and $1.5 billion for EV charging infrastructure through the Canada Infrastructure Bank.

The name Project Arrow is a deliberate callback to the Avro Arrow, cancelled in 1959 after costing more than 14,000 jobs — this time, Canada is betting on a network of suppliers and universities instead of a single company.

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