The semiconductor shortage has clearly been the dominant issue within the Canadian automotive market over the past year, with the impacts felt in sales figures and seen in empty dealer lots. To get a better measure of the issue, DAC once again partnered with CADA and surveyed new vehicle dealers across Canada to gather their input.
“The new dealer community—and the market as a whole—eagerly await the end of the semiconductor shortage,” said Andrew King, Managing Partner of DAC. “The market is currently running more than 200,000 units below potential—a situation that will only improve when normal supply resumes.”
Source: DesRosiers Automotive Consultants Inc. and CADA
According to survey respondents, new vehicle inventory levels are dramatically lower than usual, going from the usual 140 new vehicles to somewhere in the 10-30 range. In Alberta, the drop from normal to current inventory levels represented more than 130 units on average. Ontario fared marginally better, down 125 from baseline.
Source: DesRosiers Automotive Consultants Inc. and CADA
Source: DesRosiers Automotive Consultants Inc. and CADA
When asked about more recent shifts in inventory levels, only 11.5 per cent of dealers said that their situation had improved in the past 3 months. A further 30.9 per cent saw little change. The largest portion—at 57.6 per cent—cited their inventory situation becoming worse.
Source: DesRosiers Automotive Consultants Inc. and CADA
With inventory levels low, customers are increasingly having to wait extended periods of time for vehicle delivery. When asked about how long these wait times have become, just 0.6 per cent of respondents cited order fulfillment taking less than a month. Roughly one fifth—21.0 per cent—of dealers noted wait times of between one and three months. The largest portion and the majority of dealers cited typical wait times of between four and six months. In some cases—20.6 per cent of responses—dealers noted average wait times in excess of half a year for a new vehicle order to arrive.
