Canadian light-vehicle sales totalled an estimated 178,000 units in April, down 3.9 per cent from the roughly 186,000 units sold in the same month last year, according to DesRosiers Automotive Consultants (DAC).
The April results come one year after the United States imposed tariffs on Canadian-built vehicles, prompting Canada to introduce counter-tariffs on selected U.S.-built products. While the immediate uncertainty surrounding the trade dispute has eased, the underlying issues remain unresolved.
Despite the year-over-year decline, the market performed better than many observers had expected.
“Given that the economy is now facing twin challenges from the trade situation and also near record high gas prices, the SAAR for the month of 1.83 million is maybe somewhat more palatable than it first appears — and is only slightly below the 1.85 SAAR we saw in March,” said Andrew King, Managing Partner at DAC, in a statement.
The seasonally adjusted annual rate (SAAR) remained at a level generally associated with a healthy market, suggesting consumers continue to purchase vehicles despite economic headwinds.
DAC also noted a slowdown in zero-emission vehicle sales after a strong performance in March. Several models posted notable month-over-month declines in April.
However, the consultancy expects renewed momentum in the EV segment after Tesla reintroduced its China-built Model 3 to the Canadian market at a starting price of about $39,000.
April sales were also about 9,000 units higher than March, breaking an unusual pattern seen in 2025 when March, April and May all posted nearly identical sales totals.
The results suggest demand remains resilient despite ongoing economic pressures. The stronger-than-expected selling pace may offer some optimism heading into May, traditionally one of the highest-volume sales months of the year.
