COVID-19: Canadian Car Sales Are Still Down in Q3
The numerous incentives offered by car dealers since the spring are having a positive impact, for sure, but COVID-19 and the economic downturn continue to weigh on new light-duty vehicle sales in the country, which were down 3.9 percent in the third quarter compared to the same period a year ago.
According to the Automotive News Data Center, 503,114 vehicles found a home during the months of July, August and September versus 523,607 in 2019. So far in 2020, the Canadian auto industry is posting a loss of 23.6 percent.
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Some of the brands that fared the best in the third quarter include Cadillac (+23.4%), Porsche (+22.5%), Subaru (19.9%), Volvo (+19.7%), Buick (+16.4%), Kia (+14.7%) and Ford (+8.5%). Tesla (+2.6%), Hyundai (+2.5%), Mazda (+0.9%) and Toyota (+0.6%) also reported sales increases.
Subaru, by the way, just had its best month ever in Canada. Ford, meanwhile, remains the volume leader.
On the flip side, this summer was particularly tough for Infiniti (-34.7%), Mitsubishi (-32%), Jaguar Land Rover (-25.2%), BMW (-25.1%), Chevrolet (-19%), Dodge (-19.4%), Jeep (-16.3%), Acura (-15.7%), Volkswagen (-13.3%), Nissan (-12.5%) and Honda (-11.5%).
What will the fourth quarter of 2020 be like? Many analysts seem to be cautiously optimistic, while others believe sales are too unpredictable due to the slow economy and especially that dreaded second wave of COVID-19. Some car dealers might have to temporarily close again, which would have terrible consequences.
In the end, total sales for 2020 will no doubt be significantly lower than last year’s result. Global Automakers of Canada, which represents the Canadian interests of overseas automakers, is forecasting a drop of more than 20 percent.
