Auto Service World
News   April 29, 2020   by Allan Janssen

Vehicle sales recovery likely won’t come until 2021: DesRosiers

Recovery from the impacts of Covid-19 on auto sales in Canada likely won’t come until 2021, according to a new report from DesRosiers Automotive Consultants.

In the first of what is anticipated to be a series of updates, DesRosiers examined a number of factors, including production and sales data in China and Italy, to develop possible models for Canadian new-vehicle sales.

“From this modelling our current “baseline” scenario shows a decline for new vehicle sales of approximately 25-30% for 2020. The “less severe” scenario shows a decline of approximately 10-15% while the “more severe” scenario sees a precipitous fall in excess of 60% for the year,” the report states.

Acknowledging that this is “uncharted territory for all of us,” the company is mainly interested in three big questions:

* How long the virus / economic closures last?

* How deep will the economic downturn be during those months?

* What will the recovery curve look like?

“Clearly there are no easy answers to any of these questions,” the report states, but it stressed that pent-up demand will eventually have to be satiated. Other economic priorities are likely to rank above automotive in consumers’ minds in Q3 and Q4 2020.

“We would also highlight that our outlook for other sectors of the auto market – especially the aftermarket and the used vehicle market – is different from new vehicles sales. We will discuss those further in future updates.”

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1 Comment » for Vehicle sales recovery likely won’t come until 2021: DesRosiers
  1. bill morgan says:

    No matter how many new models and factory incentives the manufacturers throw at the consumer, our employment numbers will possibly result in 15 percent unemployment. Combine that with company employees that will work from home thereby reducing vehicle usage and the recent sales in 2018 and 2019 with financing terms of 84 months, I’m doubtful we’ll see any return to the “normal” auto sales we’ve seen over the last decade. Service departments will be the main source of dealership revenue. The number of franchised dealers and independent used car dealers will be SIGNIFIGANTLY reduced. Hang on Snoopy!!!

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