Canadian auto purchases fell again by 2.5% year-on-year (y/y) in March.
March marks the thirteenth straight month of year-on-year declines off near-record-high sales levels in early 2018.
However, auto purchases in Canada rose for the third consecutive time by 0.9% month-on-month (m/m) to 1.97mn units sold on a seasonally adjusted annualized rate (SAAR) basis.
Despite a sharp dip in sales in the final quarter of 2018, vehicle deliveries in Canada have begun to improve in recent months. Still, the auto industry will see purchases settle on a more stable downward trajectory towards a medium-term sales total of around 1.90 mn units sold off 2017’s record of 2.04mn units. This course is due to the Canadian economy aligning itself to its long-run potential.
Scotiabank’s Global Economics predict that auto sales in Canada will fall to 1.93 mn units delivered in 2019.