After a lackluster performance in June, July light vehicle sales in Canada bounced back.
Sales were up 11 per cent compared to 2023 levels during the same month. The gain was anticipated given the weak performance in July 2023 and a flat June 2024 due to a software outage, noted DesRosiers Automotive Consultants. The recovery is seen as a positive indicator for the market, it noted.
Despite the boost, overall sales for July 2024 were estimated at 161,000 units, which is still below the 170,000-185,000 units typically seen in pre-pandemic Julys.
Andrew King, managing partner at DesRosiers, noted the varied performance among automakers.
“What was of note in July was that performance varied widely by vehicle company, with some players recording sales declines while others enjoyed truly remarkable sales success,” he said.
The seasonally adjusted annual rate (SAAR) for July came in at 1.77 million — higher than any month in the second quarter but lower than all months in the first quarter. The back-and-forth, the consultancy noted, highlights the ongoing instability in the market. Analysts will be keeping an eye on how August will perform to gauge if stability will return.
This performance comes off a flat June performance, a disappointment after several months of strong gains. The optimism for July was partially fueled by the expectation of deferred sales due to the June software outage and a weaker comparative month in 2023.
Automakers have faced numerous challenges, including supply chain disruptions and fluctuating demand tis year. However, the July sales boost suggests a potential turning point. Notably, the report emphasized that while some manufacturers struggled, others capitalized on the market conditions to achieve significant sales increases.
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