Disruptions and vehicle supply shortages likely to persist for the foreseeable future.

During the month of May, DesRosiers Automotive Consultants (DAC), reported that vehicle sales in Ontario saw a significant increase—40% year-over-year putting the province’s new vehicle demand ahead of the national average.

This encouraging news represents a major turnaround for Canada’s largest province, which had languished behind others in growth during the fall and winter months.

In total, Ontario saw 59,322 new vehicles sold during the month of May, versus 40,749 for Quebec, 17,810 for British Columbia; 16,771 for Alberta; 4,216 for Manitoba, 3,766 for Saskatchewan; 3,643 for New Brunswick; 3,626 for Nova Scotia; 3,085 for Newfoundland and 772 for Prince Edward Island.

In terms of the biggest gains over the last year, British Columbia led the way (47.3%), followed by PEI (47%), Newfoundland (44%), Ontario (40%), Saskatchewan (34.3%) and Alberta and New Brunswick (tied at 31%). Quebec and Manitoba tied at 28.8% while Nova Scotia saw the smallest percentage gains between May 2021 and the same month in 2020 (27%).

While the increase in vehicle sales is good news, some challenges remain. The ongoing global semi-conductor shortage continues to stunt new vehicle production and hence inventory among dealers, while pandemic restrictions are still impacting the industry overall.