‘Remarkable’ new vehicle sales overshadowed by tariffs

While there was a decline in new vehicle sales in February, the month was viewed positively by industry analysts. However, the March 4 implementation of tariffs on Canada and Mexico by the United States is sending shockwaves.

DesRosiers Automotive Consultants called the tariffs “one of the most senseless acts of self-harm ever undertaken by a U.S. administration,” in its announcement of February’s sales data.

“In the face of an upcoming explosion of auto sector difficulty and pain, last month’s sales numbers seem somewhat inconsequential,” it added.

That said, it called the numbers “remarkable” even though there was an 8.2 per cent drop from the same month in 2024.

Notably, it called the fall off in BEV sales “astonishing.” It noted that “stunning declines” of BEV sales were seen across the segment.

“It should be remembered that February 2024 was easily the strongest February of all time — as finally a plentiful supply of vehicles was available after 30 months of shortages,” said Andrew King, DesRosiers’ managing partner. “As such, the overall February 2025 total is definitely solid.”

That puts the seasonally adjusted annual rate at two million vehicles. However, its analysis wondered if Canada would reach such a high with the current tariff situation.

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