Why April new auto sales eased

Canadian new‑vehicle sales softened in April as lingering trade uncertainty and near‑record fuel prices weighed on consumers, though overall volumes held up better than many had feared, according to DesRosiers Automotive Consultants.

The group estimated April sales at 178,000 units, down about 4 per cent from 186,000 units in April 2025. The result follows a turbulent year marked by the U.S. administration’s imposition of tariffs on Canadian‑built vehicles in April 2025 and Canada’s subsequent counter‑tariffs on select U.S. products. While some of the immediate tariff disruption has eased, DesRosiers said the underlying issues remain unresolved and continue to influence buyer sentiment.

Despite the year‑over‑year decline, April’s seasonally adjusted annualized rate came in at 1.83 million units, only slightly below the 1.85 million SAAR recorded in March. Andrew King, managing partner at DesRosiers, said the result was more resilient than it might appear given current pressures.

“Given that the economy is now facing twin challenges from the trade situation and also near record high gas prices, the SAAR for the month of 1.83 million is maybe somewhat more palatable than it first appears,” he noted.

Month‑over‑month patterns also shifted. After a surge in zero‑emission vehicle sales in March, the segment cooled in April, with several models posting notable declines. But that pause may be temporary, the consultancy said. Tesla’s re‑launch of its Chinese‑built Model 3 at an unexpectedly low $39,000 Canadian price point is expected to inject fresh momentum into the EV market in the coming months.

Looking back to last year highlights how patterns have changed. In 2025, March, April and May recorded nearly identical sales totals, an unusual anomaly that masked underlying volatility. That pattern has already broken in 2026, with April sales running about nine thousand units higher than March.

DesRosiers said the industry will be watching May closely to see whether volumes continue to build and return to the traditional seasonal pattern, where May typically stands as the highest‑volume sales month of the year.

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