Canada’s light vehicle market recorded a second straight month of year-over-year growth in July, with DesRosiers Automotive Consultants (DAC) estimating sales reached 173,000 units, up from 172,000 units in July 2025.
The 0.5 per cent increase follows June’s 1.9 per cent gain, ending an eight-month stretch of year-over-year declines. While modest, the result marked the strongest July since 2019 and signals continued stabilization in a market still facing challenging conditions.
“In normal times a gain of 0.5% would perhaps not be worthy of mention — but these are not normal times for the auto industry and we will take whatever good news we can get,” said Andrew King, Managing Partner of DAC, in a statement.
“To be sure the market last month was still a way off the 182,000 of July 2017 — but this nevertheless represents the best July for 7 years since the 174,000 units of 2019.”
DAC reported the seasonally adjusted annual rate (SAAR) reached 1.90 million units in July, its highest level since February. The firm described the result as a solid, if unspectacular, performance.
Manufacturer results varied significantly during the month, with several brands posting double-digit gains while others recorded double-digit declines. The market also experienced notable shifts across vehicle segments.
In the zero-emission vehicle market, Tesla continued its year-to-date recovery as overseas shipments boosted deliveries following a difficult 2025. Other ZEV brands posted mixed results, although several individual models exceeded 1,000 sales during the month.
Looking ahead, DAC noted August 2025 was one of the weakest months of last year, raising expectations that the market could post a third consecutive year-over-year gain if current momentum continues.
