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Ontario Automotive Modernization Program: How Auto Parts Suppliers Can Prepare for the Next Round

By OptiVal Editorial Desk

If you supply parts, tooling, or software to Ontario’s auto industry, the Ontario Automotive Modernization Program is one of the most generous grants available to you: up to $150,000 toward technology and lean manufacturing projects. Here is the catch. Round 7 closed in April 2026, and the province has not announced the next intake date yet.

That timing is actually an advantage if you use it well. O-AMP is competitive, discretionary, and document-heavy, and the suppliers who win are the ones who start preparing months before an intake opens. This guide covers what the program funds, who qualifies, and the five things to get ready now so your application is sitting on the starting line when the next round is announced.

What the Ontario Automotive Modernization Program funds

O-AMP is a partnership between Ontario and small and medium sized automotive parts suppliers. The goal is straightforward: modernize the province’s auto supply chain so it stays competitive as the industry shifts, including toward electric vehicles. For the most recent round, the province also flagged interest in proposals incorporating AI solutions alongside other innovative approaches.

Successful applicants can receive up to $150,000, covering up to 50 percent of eligible project costs. You fund the other half from internal resources or private financing. Projects must fit at least one of three categories:

  • Technology adoption for process efficiency. Advanced manufacturing hardware and software, AI-enabled solutions, ERP systems, production tracking, predictive analytics, computer vision, plus related training.
  • Tools for new product development. CAD/CAM systems, finite element analysis software, design-for-manufacturing tools, rapid prototyping, and other tools that support the new product introduction process.
  • Lean manufacturing. Adopting lean techniques to cut waste and lift productivity, including hiring a mentor or consultant to guide implementation.

Projects must be achievable with your financing and team in place, and they should line up with the program’s goals: job creation, revenue growth, cost savings, and a stronger regional auto sector.

Who qualifies for O-AMP

Eligibility is specific, so check yourself against this list before you invest time in an application:

  • A for-profit business with a business number, based in Ontario and in the supply chain to original equipment manufacturers of passenger and commercial vehicles. That includes machinery, software, and component suppliers, plus companies serving the EV and EV battery space.
  • Fewer than 500 employees in Ontario and less than $1 billion in global revenue.
  • At least 30 percent of total sales revenue from the auto supply sector.
  • A manufacturing location in Ontario by the time the project starts.
  • Two consecutive years of financial statements. Audited statements are preferred and review engagement statements are accepted. If your sales were under $5 million, you may be able to apply with compilation (notice to reader) statements, but expect to provide review engagement statements if your project is approved.

Two hard exclusions: aftermarket parts businesses are not eligible, and you cannot stack O-AMP with other provincial programs. Federal funding can be combined with O-AMP, but the total cannot exceed 50 percent of project costs. If you received O-AMP money before, that project must be finished before the intake deadline for you to apply again.

Why preparing now beats rushing later

O-AMP applications run through Transfer Payment Ontario, the province’s online funding portal, and the document list is long: articles of incorporation, two years of financial statements as separate documents, an Ontario tax compliance certificate, vendor quotes for every budget line, a financial attestation letter signed by your CEO or CFO, and resumes for the project team. Everything goes in as PDF.

The review committee can also request presentations and site visits, and decisions land within 60 business days of the deadline. Because funding is limited and the program is discretionary (meeting the criteria does not guarantee approval), a polished, complete application matters. Nearly every item on that document list takes time to assemble, and the financial statements are the usual bottleneck. Starting now means no scrambling when dates are announced.

Five things to get ready before the next intake opens

1. Get your financial statements to review standard. If you currently run on compilation statements and your sales top $5 million, talk to your accountant about moving to a review engagement. Even below that threshold, review engagement statements strengthen an application. This is the single most common delay, so start the conversation early.

2. Register on Transfer Payment Ontario. Every applicant must register through TPON’s three-step process before applying. Registration asks for your legal business name and CRA business number, and data entry mistakes cause delays. Do it now while there is no deadline pressure.

3. Scope your project and collect vendor quotes. Pick one of the three eligible categories and define a concrete project: an ERP implementation, a CAD/CAM upgrade, a lean transformation with a named consultant. Get written quotes for each budget line, because the application requires them.

4. Line up your attestation letter and team resumes. The signing authority letter confirms your company has the financial resources to complete the project. Draft it, and keep current resumes for the people who will run the project.

5. Check your tax compliance and talk to APMA. You will need an Ontario tax compliance certificate, so confirm your filings are current. The Automotive Parts Manufacturers’ Association (o-amp@apma.ca) helps suppliers develop and strengthen O-AMP applications, and the ministry’s Senior Business Advisors do the same. A short call now can flag weaknesses while you still have time to fix them.

A few watch-outs

Money you spend on a consultant to prepare the application cannot be claimed under the program. Keep your project inside the approved project period, because costs outside it do not count. And remember the stacking rule: no other provincial program money on the same project, with federal sources plus O-AMP capped at half the total cost.

Finally, treat O-AMP as one piece of a funding strategy, not the whole plan. If your project is about broader advanced manufacturing rather than the auto supply chain specifically, the Advanced Manufacturing and Innovation Competitiveness stream has Round 8 open until November 5, 2026. Our funding eligibility calculator can help you sort out which programs match your situation.

Not sure which programs you qualify for? We help small businesses find funding and prepare applications, from eligibility checks to document-ready application packages (consulting at $125/hr). Book a free consultation and we will map your best options before the next O-AMP intake opens.