Canadian September auto sales see first rise on year since February: consultants

Sales of Canadian new light vehicles in September inched up 2.4% year over year to 169,876 units, the first such increase since February, according to industry consultants.

"Having the automotive market back in positive territory for a month is a huge step forward for the industry," DesRosiers Automotive Consultants Managing Partner Andrew King said in a report Oct. 5.

September's buying activity also exceeded August sales estimates of 165,837 units.

DesRosiers said sales in the third quarter slipped only 3.9% from the year-ago period to 500,734 units, with eight of the 26 reporting automobile brands posting sales increases.

Among North America's Big Three automakers, Ford was the only brand to report a year-over-year increase in Q3 sales, according to the DesRosiers data. The automaker held Canada's top overall sales ranking in the quarter with an estimated 84,061 units sold, an 8.5% rise from Q3 2019.

DesRosiers said Canada's automotive market continued its rebound in September despite concerns that cases associated with the coronavirus pandemic "may have started to rise worryingly" toward the end of the month.

"Whether this momentum can be continued through the fall is an open question given the economic and social restrictions that may be put in place as part of the second wave," King said.

January-September vehicle sales in Canada were down 23.7% year over year to 1.15 million units, with all brands recording losses in the period, DesRosiers data showed.

Global Automakers of Canada provided similar September and year-to-date data, adding that the overall downward trend in 2020 sales through Q3 could continue through the end of the year.

"Should this level of sales deterioration hold through the fourth quarter, sales in Canada will fall on a full year basis to under 1.475 million, which is softer than many analysts have forecast, and you would have to go back to the financial crisis of 2008-09 to find lower annual sales numbers," GAC said in a recent report.

GAC President David Adams said the final yearly vehicle sales numbers will largely depend on consumer confidence through the fall season as the nation awaits further developments regarding the pandemic.

"We are going to be down probably 20% at the end of the year, but the wild card is the second COVID wave and whether or not we will see dealerships in certain jurisdictions close for a period of time as they did with the first wave and/or consumers limiting their movements," Adams said.