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Canadian auto sales maintain month on month rise in July

Highlights

Estimated 165,020 vehicles sold in July

Seventh best July performance in Canadian auto history

Pittsburgh — Canadian new light vehicle sales in July inched up 6.2% from June to 165,020 units following month-on-month increases of 147% and 37.3% in May and June, respectively, signaling steady recovery in the country's automotive market, DesRosiers Automotive Consultants said Aug. 5.

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"Giant strides become moderate steps, but still, the momentum is forwards," DesRosiers said in a report. "After the brutal sales collapse seen in April, the market had leapt back in May and then June."

DesRosiers said July sales only fell 4.9% from July 2019 numbers compared with much larger year-on-year declines in April (down 74.6%), May (down 44%) and June (down 16.2%).

In fact, vehicle sales for July 2020 ranked as the seventh best July performance in Canadian automotive history, according to the consultants.

"The extent to which this sales success was pent-up demand from the 'lost' spring versus a more sustainable recovery remains to be seen," DesRosiers said. "The long-term implications of COVID-19 on the economy and the automotive market are far from clear and will likely include more twists and turns."

On a seasonally-adjusted annual rate, the Canada-based firm calculated July sales at 1.8 million vehicles, up from about 1.6 million in June and down from about 1.9 million vehicles in July 2019.