2019 marks the third consecutive year of decline in Canadian auto sales.
According to the latest Auto News Flash report, published by Scotiabank Economics, Canadian auto sales were down 4.1% on an annual unadjusted basis in December.
The author of the report, Rebekah Young, Director, Fiscal & Provincial Economics, Scotiabank Economics, says that sales also dipped on a seasonally adjusted basis by 3.7% m/m.
Total annual sales for 2019 were 1.92 mn, which represents a 3.2% drop vs. 2018.
Young concludes that a cautious consumer is likely driving weaker auto sales. A weak GDP, weak job growth numbers, along with rising financing costs, high debt service costs, and low savings rates are all part of the picture.
“Our present forecast for 2020 projects continued, but decelerating, weakness in auto sales with an expected 1.915 mn units for 2020,” Young concludes.