Canadian light-vehicle sales declined for the eighth consecutive month in May, continuing a trend that has defined the market throughout 2026.
According to estimates from DesRosiers Automotive Consultants (DAC), Canadian vehicle sales reached approximately 184,000 units in May, down 1.7 per cent from the roughly 187,000 units sold during the same month last year. The result fell short of expectations that the market might surpass 190,000 monthly sales, a level not reached since May 2019.
“There had been hopes that the market may crack the 190K barrier in what is traditionally the biggest sales month of the year but, alas, that elusive mark (last reached in May 2019) remains out of sight,” said Andrew King, Managing Partner of DAC, in a statement.
The decline comes as Statistics Canada recently confirmed the country has entered a technical recession. DAC noted that sales performance across both luxury and mainstream brands was mixed, with some manufacturers posting double-digit percentage declines while others experienced more modest losses.
The seasonally adjusted annual rate (SAAR) was estimated at 1.78 million units in May, the lowest level recorded so far this year. DAC said the figure continues a month-by-month decline in SAAR that has persisted since the start of 2026.
The report also highlighted developments in the zero-emission vehicle market. May marked the arrival of the first 2,910 Chinese electric vehicles imported into Canada under a new trade agreement. However, DAC said most of those vehicles are not expected to appear in sales results until June. Sales of several high-volume ZEV models also softened compared with April.
