Retail sales at Canadian new-vehicle dealers edged higher during the first half of 2026, remaining at record levels in dollar terms despite broader economic and trade pressures.
DesRosiers Automotive Consultants (DAC) reported that retail sales at new-vehicle dealers increased 0.8 per cent compared with the first half of 2025.
Used-vehicle dealers recorded a somewhat stronger increase, with retail sales rising 2.4 per cent year over year. Automotive parts, accessories and tire stores posted a 1.3 per cent gain.
The standout increase came from gasoline stations, where retail sales jumped 13.3 per cent compared with the first half of last year. DAC attributed the increase primarily to higher gasoline prices stemming from the U.S. war with Iran.
DAC characterized the more moderate growth elsewhere in the automotive sector as a relatively positive result given the pressures facing the Canadian economy, including the trade war and global conflict.
“This recent rise in gasoline prices was an unfortunate challenge for many Canadians on top of the stresses of the U.S. initiated trade war,” said Andrew King, Managing Partner at DAC, in a statement.
Despite higher fuel prices, driving activity has held up.
“Kilometres driven, however, have remained relatively stable so far in 2026, providing a solid underpinning to the automotive aftermarket,” said King.
The figures offer another measure of the resilience of automotive spending during a challenging economic period. While the increase at new-vehicle dealerships was limited, the dollar value of retail sales remained at historically high levels, according to DAC.
Meanwhile, relatively stable kilometres driven provides an important indicator for parts, tire, service and other aftermarket demand as vehicles continue to accumulate mileage.
