Recent data from DesRosiers Automotive Consultants (DAC) shows that February was a robustly strong month that saw new light vehicle sales reach an estimated 129,000 units, based on reporting OEMs.
Keeping in mind that February has 29 days this year, the last time this occurred was before pandemic shutdowns took place. As DAC puts it, much has changed since that period, with the automotive sector entering what may be the “most challenging and transformative period in its history.”
“February 2024 sales tell us that some of the hurdles of recent years — and specifically the supply constraints of new vehicles — are now well and truly in the rear-view mirror,” said Andrew King, Managing Partner of DAC, in a statement.
February sales revealed a 24.4% increase over February 2023, thanks in part to pent-up demand from what DAC describes as the “lost sales” of those past four years during the pandemic. The Seasonally Adjusted Annual Rate for the month was 2.11 million units, which is the highest SAAR DAC has observed since January 2018.
“The market has now achieved 16 consecutive months of year-over-year growth,” said DAC in its update. “This is even more remarkable given that Canada has been in the midst of a per capita recession throughout the past year.”
With the start of March comes the traditional spring selling season, which may offer an indication as to how long the issue of pent-up demand can continue as vehicle prices increase and consumers eye high interest rates.
