Canadian new-vehicle sales fell in March, with volumes estimated at fewer than 170,000 units, down 8.2 per cent from approximately 185,000 units in March 2025, according to DesRosiers Automotive Consultants (DAC).
The decline comes despite one fewer selling day compared with the same month last year, pointing to weaker demand following stronger results in January and February.
“Soaring gas prices have added even more financial stress for Canadian consumers, on top of a full year of tariff related economic headwinds,” said Andrew King, Managing Partner of DAC, in a statement. “The SAAR for the month came in at 1.85 million — the lowest level we have seen since September 2025, and a slightly disappointing start for the first of the high-volume spring selling months.”
The seasonally adjusted annual rate of 1.85 million signals a slowdown heading into what is typically a stronger spring period. The softer March result contrasts with 2025, when March through May were the strongest selling months of the year, with relatively consistent volumes across the period.
One area of strength was the zero-emission vehicle (ZEV) segment. Several models exceeded 1,000 units in March, supported by the return of federal incentives and higher fuel prices. For the first quarter, total sales reached about 406,000 units, down 4.4 per cent from the same period in 2025 but notable considering the economic.situation.
General Motors led the market with more than 64,000 units sold in the quarter. Stellantis posted a 14.9 per cent increase, while Volkswagen reported a 12.7 per cent gain.
The luxury segment saw declines across several brands, although Land Rover recorded a 67.2 per cent increase. And light trucks accounted for 88.8 per cent of total sales in the quarter, up from 88.1 per cent a year earlier.
DAC said the coming weeks will be key in determining whether market conditions stabilize, including fuel prices and broader economic factors.
