Canadian Legislative News

Although 2018 was a turbulent year for the auto industry, recently released data shows that nearly 2 million new cars were sold across the country, making 2018 the second-best year for automotive sales on record. Canada’s confidence in the auto sector is high and Canadians are continuing to purchase new, more technologically advanced and environmentally friendly vehicles at a record rate.

With an increasing variety of automakers bringing zero emission vehicle (ZEV) options to market, 2019 promises to be another strong year.

The segment shift from cars to trucks continued in 2018, with the gap in market share widening to seven out of 10 new vehicles purchased being trucks.

The combination of a strong economy with robust job growth, affordable financing, and increasing demand in the market has also led the luxury segment to outpace sales growth in the overall auto sector in recent years. However, recent interest rates hikes have hindered the luxury segment market, and overall luxury sales decreased in 2018.

This downward trend is likely to persist as the Bank of Canada is expected to increase its policy rate moderately this year.

Consumer demand for ZEVs has increased over the past few years. Recent data shows that electric vehicle (EVs) sales increased by close to 152 percent on average in the first three quarters of 2018.

This year is poised to be another strong one for sales in Canada between fleet and retail. The economy is forecasted to grow at a healthy rate, albeit slower than last year. The USMCA agreement should return a sense of cross-border confidence and stability. However, if steel and aluminum tariffs are not promptly resolved, the auto sector will be impacted.

The trend towards zero emission and technologically advanced vehicles will likely continue, as well as consumers’ preference for trucks over cars.