Based on the Seasonally Adjusted Annual Rate (SAAR), it appears that auto and light truck sales in Canada are off to a decent start for 2013. According to DesRosiers Automotive Consultants, actual sales were down by 2.2 per cent for the month compared with a year earlier, nevertheless DesRosiers says that a solid SAAR of 1.7 million indicates that 2013 could turn out to be a good one for the industry, indeed there was a feeling of optimism when Canadian auto dealer attended this year’s North American International Auto Show in Detroit.
Canadian auto sales in January also showed an interesting trend, something that generally hasn’t been seen for a number of years, namely Detroit manufacturers gaining significant market share at the expense of import brands. In fact, DesRosiers noted that last month, Chrysler, Ford and General Motors boosted their combined market share from 45.6 to 49.2 per cent, while among import brands, only Jaguar, Land Rover, Mazda, Porsche and Volkswagen actually showed sales gains.
The Korean duo of Hyundai and Kia, which have witnessed staggering growth in the last decade, actually saw sales decline in January, perhaps aided by the fuel economy fiasco of last year when mileage claims were revealed to be overstated (surveys continue to show that fuel economy remains one of the most important considerations for new car buyers).
Getting back to the Domestics, Chrysler Group was actually the big winner in January, posting the highest retail sales thanks to 16,928 units for the month. This represents a 2.7 per cent increase year over year and as DesRosiers noted, builds on a solid performance from 2012, which saw Chrysler overhaul General Motors in terms of volume. However, for January, GM saw a slight reversal of fortune, posting a 6.2 per cent market increase, despite the overall 2.2 per cent decline in auto sales. Ford’s performance was better still, with sales showing an 8.1 per cent increase.
