Canadian Auto Sales Slump in October Amid Widespread Vehicle Shortages
Auto sales across Canada trended downwards in October, as the global semiconductor shortage weighed on vehicle supplies.
According to latest statistics published by DesRosiers Automotive Consultants, Canadian vehicle sales slumped 17.7% year-over-year last month, as ongoing issues with chip supplies continue to create headaches for major automakers. The consultancy firm determined that light vehicle sales stood at around 128,419 in October, marking the lowest monthly sales level since 2011.
As a result, DesRosiers estimates that the seasonally adjusted annual rate of sales totalled a meager 1.57 million, as the broader auto market continues to remain subdued. the Covid-19 pandemic has created significant supply chain disruptions, as unprecedented demand for electronics created production issues for other industries, namely the automotive sector.
The increased technological advancements in many new vehicle models has created added demand for computer chips, forcing some automakers to temporarily pause or even delay the launch of new cars. This has caused a mismatch between supply and demand, subsequently causing vehicle prices to accelerate substantially over the past year.
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.
