Canada’s new light vehicle market saw unusually wide swings by segment in 2025, with small vans and small pickups posting major gains while luxury cars fell sharply, according to DesRosiers Automotive Consultants (DAC).
Small vans led the market on a percentage basis, rising 39.6 per cent from 2024. Every model in the segment posted growth, and total sales reached 43,000 units for the year — a notable rebound for practical, value-focused family movers.
Small pickups also surged, up 33.3 per cent, boosted by strong volume from the refreshed Ford Maverick, including standout performance from the hybrid, and renewed strength from the Toyota Tacoma. Luxury cars moved the opposite way. The segment fell 46.7 per cent, driven in large part by a steep drop in Tesla Model 3 sales.
Compact SUVs continued to dominate the Canadian market, climbing to more than 553,000 units sold in 2025. Large pickups were the second-largest segment, with 314,000 units.
“Incredibly the subcompact, compact, and intermediate SUV segments together now account for over 50 per cent of the total new light vehicle sales market —more than the other 16 segments combined,” said Andrew King, managing partner at DAC, in a statement.
He added that in 2025, mainstream SUVs “became even more ubiquitous in dealer showrooms and furthered their absolute dominance of the market.”
SUV demand is still the volume engine, but the strong performance of small vans and small pickups suggests affordability and practicality are pulling shoppers. This is especially the case when hybrids are in the mix.
