Momentum slowing for new vehicle sales
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Canada’s new vehicle market is still moving — just not as fast as it was earlier this year. And with the economic and geopolitical backdrop, however, things may not be as bad as they seem.
New data from DesRosiers Automotive Consultants show that light vehicle sales in June reached an estimated 178,000 units, up 5.3 per cent from a weak June 2024. But the pace is clearly slowing, with the seasonally adjusted annual rate (SAAR) falling to 1.81 million — the lowest level so far in 2025.
“Significantly, the SAAR last month was 1.81 million — the lowest level so far this year and a continuation of the trend we have seen in recent months of the market losing momentum after a strong start to the year,” said Andrew King, Managing Partner at DAC.
While June’s numbers were up year-over-year, they remain well below pre-pandemic levels. For comparison, June sales topped 200,000 units in both 2017 and 2018. This year’s results were also impacted by two fewer selling days compared to June 2024.
Given the broader economic backdrop — including declining GDP and rising unemployment — the consultancy said that the market held up about as well as could be expected.
Highlights from the first half include:
With July 21 looming as the next key date in ongoing trade negotiations, DesRosiers noted it as a date to watch in hopes of a sign of a deal that could help shift the market out of its current holding pattern.
Image credit: Depositphotos.com
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