It’s seemed inevitable for several months but it’s never over until it’s over.
Now it’s over and it’s official: total sales of 1,898,485 new cars, trucks and utility vehicles in Canada in 2015 set a new all-time sales record — the third in three years — eclipsing the 2014 record by a margin of 2.5 per cent and more than 47,000 vehicles.
FCA (formerly Chrysler), which held the lead in sales among manufacturers throughout the year, was the best-selling automaker in Canada, for the first time ever, with 293,061 total sales.
“A combination of low financing rates, impressive new models with significant value-added technology, and pent up consumer demand all aligned to bring about the best year for vehicle sales in Canadian history,” said David Adams, president of the Global Automakers of Canada.
Dennis DesRosiers of DesRosiers Automotive Consultants (DAC) credited “product, product and product … a dizzying array of new products jam- packed with advanced technologies,” along with several other factors, including the renewed popularity of leasing, for pushing 2015 sales over the top.
December sales down
What did come as a surprise, however, was that December’s sales of 128,874 new vehicles were down by 1.9 per cent from the same month last year — the first monthly year-over-year decline in 32 months, according to DesRosiers.
It was still the second-best December in history for sales but the seasonally adjusted annualized sales rate (SAAR) dropped by 300,000 in just three months to below 1.8 million according to DAC, its lowest level since June.
Was that just an anomaly while buyers took a breather over the holiday season… or a signal that the market is beginning to soften? These are big questions to be answered in 2016.
FCA takes the sales crown
Although it was outsold by both Ford and General Motors in a few individual months, FCA held the year-to-date sales lead throughout the year and this time maintained it to the end, to earn its first-ever sale crown.
FCA’s sales were up just 1.1 per cent on the year and its market share fell by three-tenths of a point, but that was enough to take the top spot away from Ford.
Ford’s sales for the year fell 4.6 per cent from 2014, and it gave up 1.1 per cent of market share in dropping to second place. In third place, however, GM improved sales by 5.4 per cent and regained four-tenths of market share, closing the gap on its Detroit competitors.
All three have claimed sales leadership in individual months and are separated by a margin of less than 10 per cent, all of which promises an exciting race for first place in 2016.
Behind those three, the rankings for the year remain familiar with Toyota (+ 2.0 per cent) in fourth and Honda (+2.4 per cent), fifth, followed by Hyundai (-1.8 per cent), Nissan (+12.8 per cent), Mazda (-0.5 per cent), Volkswagen (+7.1 per cent) and Kia.
Big year for trucks, utility and luxury vehicles
Trucks (including CUVs and SUVs) continued to set the pace in December with sales up 5.6 per cent, compared to a 15.0 per cent decline for passenger car sales.
For the full year, truck sales increased by 8.8 per cent while those for cars fell 6.3 per cent, giving trucks a 62.3 per cent market share. That share has been growing in recent months, reaching 68.3 per cent in December.
“The significant shift from passenger cars to light duty trucks and crossover vehicles this year has reflected both sustained lower prices for fuel as well as the desire of consumers to maximize the utility from the vehicle they are purchasing,” said Adams.
It was the seventh year in a row that truck sales have hit record levels, according to DesRosiers, largely because of the growing popularity of utility vehicles. SUVs as a whole have been the fastest growing segments in both the mainstream and luxury markets.
The compact sport utility/crossover segment was the largest in the market in 2015, surpassing compact cars for the first time. The compact car segment has been the best-selling segment in Canada since DAC began tracking sales data.
According to DesRosiers, the luxury market also reached a new sales record and a new record market share. While luxury passenger cars saw a net increase over the previous year, luxury SUVs were the driving contributors for growth in 2015.
Among individual brands, several topped their all-time-best mark, including: Mini (+31.0 per cent); Porsche (+30.0 per cent); Lexus (+25.4 per cent); Land Rover (+22.9 per cent); Mercedes-Benz (+15.3 per cent); Nissan (+12.8 per cent); Subaru (+10.9 per cent); Infiniti (+10.0 per cent); Audi (+9.1 per cent); Volkswagen (+7.1 per cent); BMW (+6.7 per cent); and Honda (+2.4 per cent).
[NOTE: Data quoted in this report were sourced from DesRosiers Automotive Consultants, Global Automakers of Canada and individual automakers.]
