Auto sales up despite economic headwinds
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Canadian auto sales edged higher in September, even as zero-emission vehicle (ZEV) adoption continues to lag behind government targets and policy uncertainty clouds the outlook.
DesRosiers Automotive Consultants estimated 163,000 new light vehicles were sold last month, up 3.7 per cent from September 2024. The gain came with caveats: One extra selling day this year and a weak comparison to last September. Sales remain well below pre-pandemic levels, trailing the 172,000 units sold in September 2020 and far short of the 187,000 recorded in 2017.
These sales brought the seasonally adjusted annual rate to 1.85 million, which is mostly in line with what has been seen since April when tariffs first hit.
“The waiting game for a resolution of the trade situation goes on,” said Andrew King, managing partner at DesRosiers. “Meanwhile the market struggles to maintain momentum in difficult times, as margins are squeezed and pricing pressures continue to build.”
Year-to-date sales are up 4.5 per cent to 1.47 million units. Among luxury brands, results were mixed, though Genesis posted an 18.5 per cent increase and Lexus rose 15.7 per cent. In the mainstream segment, Mazda led with a 16.1 per cent gain, followed by Hyundai at 15.3 per cent and Honda at 12.5 per cent.
September also brought major developments in the ZEV space. Second quarter analysis showed a much weakened ZEV market but a stronger hybrid one. In the U.S., the $7,500 federal tax credit ended, while Ottawa paused its 2026 ZEV mandate and launched a 60-day policy review. Quebec softened its stance, announcing that internal combustion engine vehicle sales will not be banned after 2035. Meanwhile, the first shipment of German-built Teslas, intended to sidestep tariffs, arrived.
Image credit: Depositphotos.com
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