Auto sales in Canada up 9.2% in March, though signs of weakness increasing, consultancy says

According to DesRosiers Automotive Consultants Inc., auto sales in March increased by 9.2% compared to the same period last year, although this growth was less pronounced than the record gains observed in February. The firm estimated that around 159,000 vehicles were sold in March, contributing to a total of 401,000 vehicles sold in the first quarter of the year. This represents a 15.3% increase from the first quarter of the previous year.

However, despite these gains, March sales did not reach the pre-pandemic levels, which exceeded 180,000 vehicles. Andrew King, the managing partner at DesRosiers, mentioned that the lingering effects of supply chain disruptions have sustained a pent-up demand, helping to buoy sales as vehicle availability begins to stabilize.

Nevertheless, King highlighted emerging challenges in the sector, pointing out an apparent split in the market dynamics. Notably, a slowdown in the luxury vehicle segment contrasts with the relative stability observed within the mainstream vehicle market. This divergence could signal shifting consumer preferences or financial considerations in the automotive industry.

[Source: DesRosiers Automotive Consultants Inc.]