June breaks eight-month auto sales slump

Canadian light-vehicle sales returned to growth in June, ending an eight-month streak of year-over-year declines, according to DesRosiers Automotive Consultants.

The group estimated June sales at 182,000 units, up 1.9 per cent from the 178,000 units sold in June 2025. The gain was modest and came with an additional selling day compared with the same month last year, but it marked a change for an industry that has struggled through much of 2026.

“To be sure, last month’s sales were a long way off the 204,000 seen in June 2017 — when, let’s not forget, Canada’s population was 5 million people less,” said Andrew King, managing partner at DAC. “However, given the challenges facing the economy at this time, we will take any sort of market gain as positive.”

The seasonally adjusted annualized rate (SAAR) reached 1.84 million units in June. While not a particularly strong result by historical standards, it broke a steady downward trend that had persisted since January, when the market posted a 2.08 million SAAR.

DesRosiers said June represented the first strong sales month for the Model 3 since December 2024, helping offset otherwise lacklustre EV performance.

Despite the June improvement, the Canadian market remains behind last year’s pace. Total sales for the first six months of 2026 reached approximately 950,000 units, down 2.6 per cent from the 976,000 units sold during the same period in 2025.

General Motors led all manufacturers in the first half, with sales approaching 149,000 units.

Among mainstream brands, Volkswagen delivered one of the strongest performances, posting a 20.2 per cent increase in sales compared with the first half of 2025. Stellantis also reported a solid first half, supported largely by strong first-quarter results.

Luxury brands showed some of the most significant gains. Land Rover sales rose 39.7 per cent year to date, while Volvo and Genesis also recorded notable increases.

By vehicle segment, light-truck sales declined 2.1 per cent through the first half of the year, while passenger cars fell more sharply, down 6.6 per cent.

Zero-emission vehicle sales remained generally subdued in June and well below the highs recorded in March. One notable exception was the Tesla Model 3, which received a boost from the arrival of Chinese-built vehicles that had recently entered the Canadian market.

Looking ahead, DAC said progress in Canada-U.S.-Mexico Agreement negotiations could play an important role in shaping market confidence during the second half of the year. However, it called any positive news in the short term a longshot.

Image credit: Depositphotos.com