Retail sales in Canada’s automotive sector continued to grow in 2025, with both new-vehicle dealers and the aftermarket reaching record levels, according to DesRosiers Automotive Consultants.
New-vehicle dealers posted a 3.6 per cent increase in retail sales for the year, climbing to more than $181 billion. The growth reflects both higher vehicle sales and continued strength in fixed operations, which have supported dealership revenue since 2020.
The aftermarket segment also expanded, with retail sales at automotive parts, accessories and tire stores rising 3.9 per cent in 2025. That category reached a new high as well, continuing a steady upward trend.
Compared with pre-pandemic levels in 2019, the gap between the two segments has widened. Retail sales at new-vehicle dealers are up 30.9 per cent over that period, while the aftermarket has surged 49.2 per cent. In constant dollars, the increases are more moderate but still significant at 13.6 per cent and 19.8 per cent, respectively.
“The aftermarket is indeed enjoying halcyon days, although there are uncertain waters ahead for the industry as changes in the structure of the fleet, vehicle technology, and access to data create increasing challenges,” said Andrew King, Managing Partner at DAC, in a statement.
Gasoline station sales moved in the opposite direction. Retail sales declined 2.8 per cent in 2025, continuing a downward trend that began after prices peaked in 2022. The drop was driven primarily by lower fuel prices rather than reduced consumption, following the repeal of the carbon tax in many regions.
Recent geopolitical developments have begun to push fuel prices higher again, potentially affecting driving patterns and consumer spending on vehicles and maintenance in the months ahead.
