Canada’s new-vehicle market is proving difficult to slow down, with October sales approaching a record for the month despite a challenging economic environment.
According to DesRosiers Automotive Consultants (DAC), an estimated 162,000 light vehicles were sold in October, an increase of 1.8 per cent from the approximately 159,000 units recorded during the same month in 2025. The result marked the fifth consecutive month of year-over-year sales gains.
The performance came despite weak employment figures, an interest rate increase, stagnant GDP, elevated gasoline prices and continued trade tensions. October also benefited from one additional selling day compared with the previous year.
Even with that advantage, sales finished approximately 3,000 units below October 2017, which remains the strongest October on record for the Canadian market. The seasonally adjusted annualized rate (SAAR) climbed to 1.98 million units, its highest level since February, suggesting underlying demand remained relatively strong.
However, the overall market improvement masked significant differences between automakers. DAC reported that several brands experienced double-digit sales declines, while others posted substantial increases. One vehicle company even recorded its strongest Canadian sales month ever.
The zero-emission vehicle market also remained strong, although DAC reported no widespread evidence of consumers accelerating purchases ahead of declining year-end incentives.
“With 2 months to go in 2026, the market has clawed its way back to a decline of only 0.5% YTD. At the end of May we had seen 8 straight monthly declines and a market running down 3.7% from the previous year. The change in direction has been something to behold,” said Andrew King, Managing Partner of DAC, in a statement.
The continued sales growth offers an encouraging signal heading into the final two months of 2026, particularly after the market’s difficult start to the year.
