In looking back at the last year, DesRosiers Automotive Consultants wondered whether 2024 was the start of the new normal or simply a pause from chaotic times to come?
They said the last few years have been difficult for the Canadian light vehicle market, but that 2024 offered a level of equilibrium. The company’s data shows that overall sales reached an estimated 1.86 million for the year, up 8.2% from 2023’s 1.72 million units.
“While we would never take a gain of 8.2% for granted, the market remains approximately 180,000 units below its 2017 high, despite a Canadian population that has increased from 36.7 to 41.5 million people over that time,” said Andrew King, Managing Partner of DAC, in a statement.
The year started with a strong January and February, which exploded with pent-up demand from consumers. And the end of the year saw strong fourth quarter sales, as Quebec consumers rushed to get zero-emission vehicles before provincial incentives are no longer offered.
However, there were several other big picture market dynamics that stood out in 2024. Among them, the light truck share hit a new record and passenger cars slipped to only 13.4% of total sales; the luxury market significantly underperformed due largely to affordability issues; compact SUVs dominating the market with sales rising to more than 560,000 units; and a resurgence in plug-in hybrid electric vehicles.
DAC said it hopes the market equilibrium “hangs around” for 2025. But with a new “unpredictable” U.S. administration set to take over, and a Canadian election on the horizon, they do have their doubts.
