Auto sales across Canada skyrocketed in April compared to the same month a year earlier, as consumers resumed vehicle purchases following the nadir at the beginning of the pandemic.
According to estimates published by DesRosiers Automotive Consultants, Canadian auto sales rose from 45,833 units in April 2020 to 162,455 units last month, marking a 254% year-over year-increase. With the onslaught of Covid-19 restrictions being imposed during April of last year, vehicle sales were brought to a near-halt.As a result, DesRosiers noted it isn’t surprising to see such a surge from 2020 levels.
However, DesRosiers did note that April’s seasonally adjusted rate of sales declined to 1.66 million units— which is significantly lower compared to the 1.91 million cars sold in March. Going forward, DesRosiers anticipates that the month of May will be an important time to monitor auto sales, as it is typically a busy time of the year and the ongoing semiconductor chip shortages could derail a further recovery for Canada’s auto sales market.
Information for this briefing was found via DesRosiers Automotive Consultants. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.