For the first time in 18 months, new-vehicle sales in Canada show signs of the extended decline bottoming out. Sales were down by just 1.0% in July and they were actually up by 0.6% in August, with 182,040 new vehicles sold, according to DesRosiers Automotive Consultants (DAC).
In addition, the SAAR (Seasonally Adjusted Annualized Sales Rate) for August, published by DAC, crept slightly above 2.0-million for the first time in a year.
“Consumer confidence was lower in August than it has been,” observed David Adams, president of Global Automakers of Canada. “However, we still have interest rates at very attractive levels to perhaps counter-balance lower consumer confidence ratings,” he added.
“Although the slight uptick in August sales provides some comfort, the overall market is still down 4.1% year-to-date with a total of 1,335,680 new units sold,” cautioned Dennis DesRosiers of DAC. “With the high-volume summer sales season behind us, it is looking more and more like Canada will see a second year of declining new vehicle sales.”
Underpinning August’s slight gain, only 11 brands reported an increase in year-over-year sales, while 15 showed declines. As has come to be expected, strong performance from the light truck/utility vehicle segment, which was up by 8.4%, helped offset a continued downward trend in passenger car sales, which are down by 18.3%.
Ford still on top
In spite of a second consecutive month of decline, with its 26,665 sales down 8.8% from a year ago, Ford maintained the top spot in the sales rankings. Year-to-date, the Blue Oval’s 206,286 sales are down by 3.0%, still ahead of the market average, so market share is up by 0.1% to 15.4%.
General Motors’ estimated July sales of 25,171 new vehicles were also down by 3.4%, and its 183,274 cumulative sales were off by 11.1%. As a result, GM’s market share is down by 1.1%, to 13.7%, leaving it in second place and well behind Ford.
After being surpassed by Toyota for the past couple of months, Fiat Chrysler Automobiles (FCA) reclaimed third place for August with estimated sales of 22,648 units (up 27.5% from last year), leading the market in terms of percentage gain. FCA’s eight-month total of 159,000 sales, down 5.5%, keeps it in third place for the year-to-date, but it has given up 0.2% of its market share, falling to 11.9%.
Combined, Detroit Three sales were up by 1.9% in August, claiming 42.2% of the overall market as a whole.
Toyota fell back to its familiar fourth place in August with 20,286 sales, up by 10.4% from the same month last year. Year-to-date, Toyota’s 148,097 sales are up by 5.9% from 2018, boosting market share by 1.1% to 11.1% – the greatest gain in the industry.
In fifth-place, Honda sold 16,542 vehicles in August, a 1.4% decline from a year ago. Year-to-date sales of 119,888 units are down by 3.4% from last year, but market share is up by 0.1% to 9.0%.
Hyundai and Kia continue to grow
Solidifying its hold on sixth place, Hyundai sold 13,265 new vehicles in August, an increase of 1.1%. The Korean brand’s 91,231 year-to-date sales are up by 3.7%, increasing year-to-date sales by 0.5% to 6.8%, second-best only to Toyota in share gain.
Nissan remained seventh in August sales, with 11,226 units sold, a decline of 7.6%. It’s also seventh for year-to-date sales, with 87,400 vehicles sold, down by 7.4% and a market-share decline of 0.3% to 6.5%.
Kia again ranked eighth for the month with 7,640 sales, up 3.0% from a year ago, and eighth place for the year-to-date, with 53,906 sales, up by 2.9%. As a result, Kia’s year-over-year share is up by 0.2% to 4.0%.
Volkswagen and Mazda continue to vie for ninth place, with VW reclaiming that position for August as well as maintaining it year-to-date. The German brand sold 6,858 units for the month, a decline of 2.4%, and 46,062 units for the eight-month period, a 3.5% decline that is close to the market average, keeping market share steady at 3.4%.
Mazda’s 6,408 August sales, down 9.2% from a year ago, relegated it to 10th-place for both the month and the year-to-date. Cumulative sales of 45,574 units are down 13.5%, cutting market share by 0.3% to 6.5%.
Subaru’s sales declined by 6.1% to 4,730 units in August keeping it in 11th-place. Year-to-date, Subaru sales are down by 1.7%, which still outperforms the market, resulting in a 0.1% increase in market share to 2.8%.
With an 18.4% sales increase, Mercedes-Benz retained 12th-place and premium-brand leadership for the month and year-to-date, ahead of BMW and Audi in that order.
Winners and losers
On a percentage basis, the biggest gains in August were seen by FCA (+27.5%), Mercedes-Benz (+18.4%), and Toyota (+10.4%).
The biggest losers, in percentage terms, were Genesis (-22.7%), Jaguar (-21.7%), Mini (-20.8%), Mitsubishi (-16.3%) and Infiniti (-15.7%).
It should be noted that the total market sales figures reported here are now estimated by DesRosiers Automotive Consultants (DAC), given Fiat Chrysler Automobile and General Motors’ recent decision to report actual sales only on a quarterly basis. These estimated monthly results are reconciled quarterly to reflect actual sales when GM reports officially.
