Vehicle sales in Canada have been increasing over the last several months, signalling a recovery is underway for the auto industry following stringent lockdown measures and restrictions across many of the country’s sectors.
According to data released by DesRosiers Automotive Consultants Inc. a total of 165,020 vehicles were sold in July, which amounts to an increase of 6.2% since June. Although sale numbers are still 4.9% lower than the same month only a year prior, the upward trend is a positive outlook for the auto industry. After an alarming drop in vehicle sales in April following the government-imposed coronavirus restrictions, numbers have increased by a total of 147% since. Much of this increase can be validated by recent data released by Statistics Canada, which has found much the similar positive trend.
Although the strength of the rebound has been significant, DesRosiers consultants are unable to pinpoint whether or not the positive momentum stems from buyers recently entering the market after holding off during spring. As a result, the oncoming months will most likely better illustrate the developing trends in the auto sales industry.
Information for this briefing was found via DesRosiers and Statistics Canada. 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.