Buckle your seatbelts. It’s still going to be a bumpy ride.
As Canadian auto dealer marks its 20th anniversary in December, Canada’s auto retail landscape bears little resemblance to the environment in which the magazine launched.
The era of walk-in traffic and abundant inventory has given way to digital discovery, constrained supply, and the highest vehicle prices Canadians have ever encountered. In two decades, dealerships have endured a global financial crisis, a pandemic, semiconductor shortages, shifting consumer expectations, and one of the most consequential transformations of all: the transition toward zero-emissions mobility.
The longer-term implications of the U.S. government’s evolving trade posture toward Canada are still emerging, and the industry is once again preparing for structural change. Yet through every disruption, dealers have adapted, diversified, consolidated, and refocused on customer experience. The following retrospective highlights the key shifts, shocks, and milestones that have reshaped Canadian auto retail over the past 20 years.
Industry Evolutions
2005–2007: Digital systems, traditional sales
Dealerships had widely adopted DMS and CRM systems, but the business remained rooted in the physical showroom. Most transactions were negotiated face-to-face, and the sales process remained firmly traditional.
2008–2010: Financial crisis, bailouts, and network restructuring
The global financial crisis swept through Canada, sending sales into freefall and leading to government-backed restructurings at GM and Chrysler. GM’s termination of roughly 240 dealerships marked one of the largest network contractions in Canadian automotive history, accelerating consolidation and reshaping communities.
Early 2010s: Gradual recovery and changing market share
The industry rebounded, buoyed by stronger performance from import brands and renewed consumer confidence. Leasing and certified pre-owned programs expanded, and dealer groups grew through acquisition as scale became increasingly important.
2013–2016: The rise of trucks and SUVs
Consumer preference shifted decisively toward SUVs and pickups. Dealers adjusted quickly, rebalancing inventory, reshaping marketing strategies, and redesigning showroom and lot configurations to meet the new demand profile.
2016: Genesis experiments with a new model
Genesis’ Canadian launch with a boutique, direct-to-consumer format signalled early OEM experimentation with alternative retail structures. The industry began debating how agency-driven and hybrid distribution models might reshape the dealer role.
2016–2020: CASE reframes the industry’s future
Connected, Autonomous, Shared, and Electrified mobility emerged as the dominant framework through which global automakers viewed the future. OEMs invested heavily in autonomy pilots, telematics platforms, mobility services, and early electrification programs. For dealers, the CASE era introduced both opportunity and uncertainty, prompting questions about subscription models, predictive maintenance, evolving ownership patterns, and long-term implications for retail networks.
2013–2025: The growth of the CADA Summit
Launched in 2013, the CADA Summit grew into one of the country’s most influential auto retail forums. By the mid-2010s it had become a key platform for policy discussions, economic analysis, and electrification strategy, strengthening the national dealer voice during a period of rapid industry change.
2010–2025: The rise of provincial dealer events
Provincial dealer associations built a strong ecosystem of regional events that helped drive professional development and community across the country. The TADA’s early Digital Dealer series evolved into the Automotive Conference and Expo (ACE), Western Canada expanded with the Western Canadian Dealer Summit, Atlantic Canada solidified CADEX as its annual gathering, and Manitoba advanced dealer engagement with the MDA Drive event. By 2024, the CCAM Summit emerged as a new focal point for Montreal dealers, joining the CCAQ in staging relevant dealer events.
2017–2019: EV mandates and a new policy environment
Governments in Quebec and British Columbia introduced Canada’s first zero-emission vehicle mandates, while the federal government launched the iZEV incentive program. Dealers faced new infrastructure expectations, expanded training needs, and growing EV allocations as government policy accelerated electrification.
Late 2010s: Digital retail becomes mainstream
The consumer journey shifted decisively online. Enhanced CRM systems, digital lead tools, and online merchandising became standard across the industry. The buying process evolved into a hybrid model blending online research with in-store engagement, a precursor to the retail systems that would dominate in the years ahead.
2020: COVID shutdowns and digital acceleration
Lockdowns forced showrooms to close or operate under severe restrictions. Dealers rapidly deployed digital contracting, remote sales processes, virtual walkarounds, and new sanitization protocols. Major Canadian auto shows were cancelled for the first time in decades, and the industry adapted overnight to a dramatically altered operating environment.
2021–2022: The supply chain crisis and the used-vehicle boom
Semiconductor shortages and global logistics disruptions constrained new-vehicle supply, pushing dealers toward order-based sales models. Used and certified pre-owned vehicles became essential revenue drivers as market prices rose to historic highs.
2020–2023: The EV surge
A combination of government incentives, higher fuel prices, and stronger model offerings drove rapid growth in EV demand. By 2023, EVs and plug-in hybrids represented nearly one in ten new registrations nationwide, with significantly higher penetration in Quebec and British Columbia. OEMs announced aggressive electrification targets while dealers invested heavily in charging infrastructure, technician training, and customer education.
2021: Pfaff joins Lithia
Lithia Motors’ acquisition of Pfaff Automotive Partners marked a pivotal moment in cross-border expansion. The transaction signalled rising interest from U.S. dealer groups and shifted the competitive landscape for large Canadian retailers.
2015–2025: Fixed operations take centre stage
As margins tightened and market volatility increased, fixed operations became the stabilizing backbone of dealership profitability. Increased vehicle complexity, warranty volumes, and retention strategies made the service department a critical strategic asset across the industry.
Mid-2020s: The Chinese OEM wave approaches
Chinese manufacturers such as BYD, Geely, and SAIC expanded aggressively in global markets with cost-competitive EVs and advanced technology. Their anticipated entry into Canada prompted new discussions around pricing dynamics, distribution models, and competitive challenges.
2023: Auto shows return
After pandemic cancellations, Canada’s major auto shows returned with strong public engagement. EVs and technology-focused displays dominated show floors, reaffirming ongoing transformation in consumer interest and product direction.
2023–2024: The EV plateau
After several years of rapid growth, EV demand began to level off. High prices, charging concerns, winter performance issues, and consumer hesitation produced a more cautious market. Some OEMs adjusted timelines, and for the first time some dealers faced excess EV inventory. The slowdown added tension to Canada’s longer-term mandate for 100 per cent ZEV sales by 2035. The federal government is reviewing the program with no clear indication yet of what will emerge.
2020–2025: Insurance and auto theft pressures intensify
Beginning around 2020, rising auto theft rates and escalating insurance premiums emerged as major operational concerns. Organized theft activity, export pipelines, and insurer risk adjustments increased coverage costs for consumers and created new challenges for dealers. Many dealers invested in enhanced lot security and new vehicle theft recovery devices and devoted more time to helping customers navigate rising premiums and availability issues.
2024–2025: Hybrid retail and operational reinvention
Dealers refined hybrid sales models that combined digital tools with in-person service. OEMs continued testing variations of agency and direct-to-consumer approaches in global markets. Canadian retailers concentrated on expanding service capacity, improving EV readiness, strengthening data systems, and developing talent pipelines.
2025: A trade shock reshapes the landscape
The return of U.S. President Donald Trump and the reintroduction of tariffs disrupted long-standing cross-border manufacturing patterns. OEMs began reassessing sourcing and production strategies, creating new uncertainties for Canadian retailers. Reduced access to locally built vehicles and rising import costs signalled a reshaped competitive environment for the decade ahead.
A constantly moving target
Canadian auto retail has never stood still. The past 20 years delivered seismic change, and the next 20 will undoubtedly bring more. What remains constant is the resilience, ingenuity, and adaptability of Canada’s dealers as they navigate an industry defined by perpetual motion.
