Average transaction prices for new light vehicles in Canada declined slightly in 2025, marking the first pullback after several years of sharp increases.
Prices fell 0.6 per cent to $53,400, ending a run that saw average transaction values rise more than 30 per cent between 2019 and 2024, according to a report from Desrosiers Automotive Consultants.
Light trucks, which account for 88 per cent of the market, also saw a 0.6 per cent decline, while passenger car prices dropped more sharply by 1.4 per cent, albeit on significantly lower sales volumes.
The shift reflects a combination of factors, including a return to fuller inventory levels and a decline in electric vehicle sales, which typically carry higher price tags than internal combustion engine models. Canadian counter-tariffs also weighed on higher-end segments, contributing to notable sales declines among some luxury-focused manufacturers.
Changes in consumer preferences also played a role. Larger vehicles such as full-size pickups lost share to more affordable compact models, while subcompact SUVs gained ground at the expense of larger utility vehicles, helping to moderate overall price growth.
Regionally, Quebec recorded a 1.7 per cent decrease, driven in part by softer battery electric vehicle sales. Ontario saw a 0.8 per cent decline, while Alberta posted a 1.1 per cent increase, reflecting its stronger reliance on internal combustion vehicles.
“The decrease in transaction prices is in part the result of consumers pulling back from the BEV market in 2025,” said Andrew King, Managing Partner at DAC, in a statement. “The market outlook in 2026 is complex with a partial recovery in BEV sales, but ongoing trade conflicts and rising gas prices also impacting the sales mix.”
