Due to the potential U.S. administration tariffs, which have been paused for 30 days, it may be difficult to put January 2025 light vehicle sales into context — at least at this time.
DesRosiers Automotive Consultants’ latest update questions if this is the calm before the storm or the beginning of another growth year. Or rather, are we facing a recession and notably higher vehicle prices, or a stable market that will continue to build on the last couple of years?
“One certainty is that the year started on the front foot, with light vehicle sales as estimated by DAC reaching 118,000 — a 3.1% gain from 2024 and matching the highest January total that the Canadian market has ever seen (2018),” said Andrew King, Managing Partner of DAC, in a statement.
DAC said the seasonally adjusted annual rate (SAAR) came in at 2.15 million for January, a continuation of the strength seen in the last quarter of 2024. However, even with this market growth there is concern around falling sales for a number of key zero-emission vehicle models, “as January saw a (somewhat chaotic) end to the iZEV incentive program, and reduced Quebec provincial incentives.”
“Further potential ‘payback’ in February and March from the rush of ZEV sales in Q4 2024 will be something we will be watching closely,” they added.
