August auto sales dip as economic uncertainty weighs on market

Canada’s new vehicle market showed signs of softening in August after months of positive outlook.

Sales last month came in at an estimated at 160,000 units, down 2.9 per cent from the same month last year, according to DesRosiers Automotive Consultants. The decline marks the first year-over-year drop since February, though the month had one fewer selling day than in 2024.

The slowdown comes as Statistics Canada reported a 1.6 per cent annualized contraction in GDP for the second quarter, driven by falling exports and weaker business investment. Household spending rose during the period, with automotive purchases contributing to that gain, but the consultancy questioned how long consumers can sustain this pace amid broader economic headwinds.

“Corporate performances in August were decidedly mixed, with some companies seeing double digit gains while others saw double digit losses,” said Andrew King, managing partner at DesRosiers. “Overall, however, the market was definitely trending weak with the SAAR coming in at 1.76 million, the lowest level we have seen so far in 2025.”

August sales remain well below pre-pandemic levels, when monthly volumes regularly topped 180,000 units in the 2017-2019 period.

With trade negotiations unresolved and tariff concerns lingering, DesRosiers noted that the industry continues to “tread water” while waiting for a clearer path forward.

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