Canadian demand for brand spanking new automobiles continues to be sturdy and stock is slowly constructing, however gross sales stay a great distance off these of 2019, the final 12 months earlier than the COVID-19 pandemic wreaked havoc on the auto business.
Most automakers nonetheless reporting month-to-month gross sales noticed their July numbers enhance in comparison with the identical month in 2022. However, nearly all fell nicely wanting 2019 totals. Solely Subaru can justifiably say it’s again to “regular.”
The automaker in July was closest to its 2019 totals. It bought 5,133 automobiles final month, up 63 per cent over July 2022 and down simply half a per cent from 2019, when it bought 5,159.
DesRosiers Automotive Consultants estimates automakers bought 140,942 new light-vehicles in July. That’s up eight per cent from the 130,480 they bought a 12 months in the past.
“There may be nonetheless important floor to cowl as a way to return to pre-pandemic ranges,” DesRosiers stated in a information launch. “July new mild car gross sales in 2019 reached 173,519 models bought, which means July 2023 stays 18.8 per cent behind.
“Nonetheless, the market continues to point out constant promise, even outdoors of the spring promoting season.”
Month-to-month gross sales figures are actually estimates as a result of so many automakers have turned to quarterly reporting. Ford has modified to annual reporting solely. DesRosiers makes use of its personal proprietary technique to estimate month-to-month gross sales.
Honda’s July gross sales totaled 10,905, up 32.5 per cent in contrast with the identical month final 12 months. However, they’re nonetheless down 38 per cent in contrast with 2019, when the automaker bought 17,961.
It was an analogous scenario for Hyundai, which noticed gross sales — together with its luxurious Genesis model — enhance 1.2 per cent to 10,605 in July, however remained down 19.5 per in contrast with the identical month 4 years in the past.
DesRosiers Automotive Consultants lately stated the pandemic and the car shortages that adopted “created chaos within the automotive market.”
“Some manufacturers managed to constantly get some stock to sellers, some noticed availability ebb and circulate, and a few manufacturers skilled sustained stock troubles that proceed to persist immediately,” the agency stated earlier this month.
Toyota and Kia have been each down eight per cent from July 2019.
Nonetheless, Toyota bought extra automobiles than any reporting automaker final month. It bought 19,871, up seven per cent from a 12 months prior. And Kia gross sales have been up 39 per cent to 7,333 in July.
Volvo and Mazda had not reported July gross sales as of Aug. 2.
Gross sales have elevated tin 9 consecutive months, DesRsoiers stated.
U.S.-based auto analyst Sam Fiorani of AutoForecast Options wrote within the newest AutoForecast Month-to-month that gross sales in Canada stay regular.
However, he raised issues over potential strikes by Unifor in Canada and the UAW in america as bargaining between the unions and the Detroit Three begins this month.
“Producers are upping their manufacturing plans for the summer time to maintain stock ranges ample within the fall, however this will not be sufficient to maintain gross sales from sagging in quarter 4,” he wrote. “Like within the U.S., Canada may very well be influenced by a labour strike within the final quarter of 2023, however, anticipating that problem, the forecast for gross sales this 12 months stays at 1.64 million models.”
This report will probably be up to date.