DesRosiers Automotive Consultants said the Bank of Canada spoke of the “resilience” to date of the Canadian economy in light of U.S. tariffs, and said it was a good word when considering July light vehicle sales.
Sales as estimated by DAC came in at 172,000 units — up 6.9% from the 161,000 units of the same period last year. However, they also noted that “caveats abound” as July 2024 was “a decidedly weak comparable.” This year had one more selling day.
The impacts of the counter-tariffs have also not yet been fully felt, since many OEMs were selling from pre-tariff inventory. “However, even with those disclaimers the month was solid — the best July we have seen since 2019 when sales were at 174,000 units.”
According to Andrew King, Managing Partner of DAC, the SAAR for the month came in at 1.89 million, which is below the levels seen in the first quarter of the year — but certainly “resilient” when considering the trade situation and uncertainty.
“Significantly the SAAR also showed no deterioration from the levels seen in Q2 — an achievement in itself given the myriad challenges that face the Canadian economy,” he said in a statement.
Within the market, DAC said sales of zero-emissions vehicles remained largely dormant and that Canadian consumers need both clarity and realism from the federal and provincial governments when it comes to the future of EV mandates and incentives. Progress in this area may be difficult, otherwise.
