Spring auto sales off to ‘disappointing start’

Canadian new vehicle sales softened in March as higher fuel prices and ongoing economic uncertainty weighed on consumers, according to DesRosiers Automotive Consultants.

The group estimated March sales at under 170,000 units, down 8.2 per cent from 185,000 units in March 2025. While the month had one fewer selling day than last year, DesRosiers said the result still marked a weaker performance than seen in January and February and a disappointing start to the spring selling season. The seasonally adjusted annualized rate came in at 1.85 million units, the lowest level since September 2025.

“Soaring gas prices have added even more financial stress for Canadian consumers, on top of a full year of tariff related economic headwinds,” said Andrew King, managing partner at DesRosiers. “The SAAR for the month came in at 1.85 million, the lowest level we have seen since September 2025, and a slightly disappointing start for the first of the high‑volume spring selling months.”

One bright spot in March was the zero‑emission vehicle segment. DAC said several ZEV models surpassed 1,000 units in monthly sales as renewed federal purchase incentives and higher gasoline prices boosted interest.

On a quarterly basis, the market posted more stable results. First‑quarter sales totalled 406 thousand units, down 4.4 per cent from the first quarter of 2025 but still a solid showing given broader economic pressures.

The group noted that General Motors led the market by volume, with sales exceeding 64,000 units in the quarter. The luxury segment had a difficult start to the year, with several major brands posting notable declines, though Land Rover stood out with sales up 67.2 per cent. Among higher‑volume brands, Stellantis recorded a 14.9 per cent increase for the quarter, while Volkswagen posted a 12.7 per cent gain. Light trucks accounted for 88.8 per cent of total new light‑vehicle sales in Q1 2026, up from 88.1 per cent a year earlier.

March, April and May were the three strongest selling months of 2025, DesRosiers observed, with remarkably consistent volumes and less than a 3,000‑unit spread between months. King said the firm will be watching the coming weeks closely to see whether easing geopolitical tensions, moderation in fuel prices and improving consumer confidence can help restore momentum to the market as the spring progresses.

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