Canada’s vehicle market showed widening gaps between segments in the first quarter of 2026, with strong gains in practical categories and steep declines in luxury and small car segments, according to new data from DesRosiers Automotive Consultants.
The small van segment posted the largest increase, rising 30.5 per cent compared with the same period in 2025. The segment had already seen strong momentum last year, making the latest gains notable against a high baseline.
Close behind, the intermediate car segment climbed 30.0 per cent, driven in part by increased volumes of the Toyota Prius and Camry. The subcompact SUV segment also recorded growth, up 13.0 per cent, supported by higher sales of the Nissan Kicks.
At the other end of the market, luxury segments saw sharp declines. Luxury high vehicles fell 31.8 per cent, while the luxury car segment dropped 37.5 per cent year-over-year.
The shrinking subcompact car segment posted the steepest decline, down 49.6 per cent, despite continued demand for the Fiat 500e. The category has been further reduced by the disappearance of the Mitsubishi Mirage.
“The performance of the luxury market in 2026 will be an area of real interest,” said Andrew King, Managing Partner of DAC, in a statement. “With the Canadian economy now facing threats not only from trade issues but also high gas prices, the impact on different market segments will be fascinating to track.”
The results point to a continued shift toward value-oriented and utility-focused vehicles as economic pressures shape consumer buying decisions.
