Luxurious manufacturers have been the massive winners in August for automakers that also report month-to-month gross sales.

Acura, Genesis, Lexus and Volvo all posted positive aspects final month whereas Subaru was the one mainstream model to do the identical.

Lexus led the best way by quantity, promoting 2,508 autos, up 28 per cent over the identical month a yr in the past.

August marked the sixth consecutive month of document gross sales for Toyota Canada’s Lexus division. 

Genesis was the largest gainer by share, up 416 per cent to 526 items compared with August 2020.

Acura gross sales have been up 5.6 per cent to 1,555 items whereas Volvo elevated gross sales by the identical share, to 1,100 autos.

Rebekah Younger, the director of fiscal and provincial economics with a concentrate on automotive retail at Scotiabank Economics, says there are many explanation why luxurious names are scorching sellers.

“I believe the largest driver is the so-called wealth-effect: Anybody with job and a few fairness (housing or monetary markets) has seen their web price improve fairly considerably over the course of the pandemic,” she stated in an electronic mail to Automotive Information Canada. “Moreover, we’ve seen family financial savings improve fairly considerably throughout all revenue brackets. With restricted different discretionary spending in classes like journey, eating places, and many others. till lately, there may be most likely extra discretionary spending directed to items like luxurious autos. 

“Lastly, the proposed luxurious auto gross sales tax is scheduled to come back into impact in January 2022 pending consultations, election outcomes, and many others. so there may very effectively be some pull-forward in purchases forward of this potential tax.”

The federal authorities introduced in its April finances that, efficient Jan. 1, 2022, autos $100,000 and extra will probably be levied with a luxurious tax of as much as 10 per cent relying on the acquisition value. Boats and plane priced at $250,000 are additionally affected.

Ottawa opened public consultations Aug. 10 and the nation’s auto business can nonetheless have its say as federal get together leaders marketing campaign forward of the Sept. 20 election. Stakeholders have till Sept. 30 to submit their ideas.

Whereas luxurious gross sales boomed, the overwhelming majority of mainstream manufacturers noticed their gross sales sink. Subaru was the one gainer. The Japanese automaker marked a document August with 5,853 items retailed, up 11 per cent from the identical time final yr.

The Crosstrek remained the best-selling mannequin within the lineup. Gross sales have been up 86.5 per cent to 2,568.

General, whole Canadian gross sales have been down an estimated 11.4 per cent to 146,925, in line with DesRosiers Automotive Consultants. Month-to-month gross sales are an estimate now that so many have turned to quarterly reporting.

Moreover, gross sales have been “down a disconcerting 19.2 per cent from August 2019,” DesRosiers stated in an announcement.

The seasonally adjusted annual gross sales price for August fell to1.62 million, the second lowest price in 2021.

DAC stated that with the semiconductor points forecast to persist by means of the rest of the yr the gross sales outlook stays questionable.