Market and Economy Watch – September 2020
October 13th, 2020
By Oumar Dicko, Chief Economist, CADA
Canadian new vehicle sales recorded a strong surge in September. An estimate by DesRosiers Automotive Consultants indicates that September sales increased by 2.1% from the same month last year.
Total sales for the month came in at 169,876 units, and over 1.14 million units through the first three quarters. The increase in September’s volume was due in part to the inclusion of the Labor Day sales weekend, and two additional selling days compared with September 2019. But despite those differences, this is positive news for the Canadian auto market and it signals that consumer demand is recovering at a relatively strong pace from the spring.
This is highly consistent with the overall Canadian economic recovery. Consumer confidence continues to trend upward, while the labour market and retail activity are bouncing back. That said, downside risks persist and the pace of the recovery remains highly correlated on the trajectory of the pandemic and the evolution of measures required to contain its spread. This is particularly the case with the resurgence of cases and second wave underway in many parts of the country.
The deeper dive in the data shows trucks continue to gain in market share despite the pandemic. While passenger car sales declined by over 21% on a year-over-year basis, truck sales have increased by close to 2%. Almost eight out of 10 vehicles purchased in Canada so far this year have been trucks.
New Vehicle Market
*DesRosiers Automotive Consultants Inc. estimate
Source: DesRosiers Automotive Consultants Inc.
Source: DesRosiers Automotive Consultants Inc.
Source: DesRosiers Automotive Consultants Inc.
Source: DesRosiers Automotive Consultants Inc.