A return to normal after difficult years
The Canadian new vehicle market appears to have regained some balance in 2024, after years marked by the COVID-19 pandemic and a global shortage of semiconductors. According to DesRosiers Automotive Consultants (DAC), 1.86 million vehicles were soldan increase of 8.2% compared to 2023.
This is the highest total since 2019, when 1.91 million vehicles were sold. “2024 has finally brought some level of balance…much to the relief of consumers and the industry,” DAC said.
The rise of electric vehicles
Electric vehicles have been a significant driver of growth, particularly in Quebec, where the announcement of reduced incentives under the Roulez Vert program pushed consumers to rush to electric models.
The notable figures for EV sales in 2024 :
- Toyota : 117,528 electrified vehicles sold (+17.7%), representing 49.2% of its total sales.
- Ford : 21,153 electric vehicles sold (+66.1%), a record for the brand.
- General Motors : Chevrolet Equinox EV sales reached 16,989 units, accounting for more than half of the total sales of this model.
However, the future of electric vehicle incentives remains uncertain in both Canada and the United States, which could slow this trend.
SUVs still dominate the market
The compact and subcompact SUV segments continue to outperform traditional cars, with sales reaching over 560,000 units in 2024.
According to Michael MacGillivray, CEO of Century Auto, this transition is explained by the gradual disappearance of compact cars in favor of SUVs “Subcompact SUVs are similar to sedans in terms of price, which appeals to consumers,” he added.
Political and economic uncertainty in 2025
While 2024 was a year of recovery, 2025 looks uncertain. With the departure of Justin Trudeau from his post as Prime Minister and trade tensions between Canada and the United States, the market could be affected by customs tariffs.
-Donald Trump, president-elect of the United States, has threatened to impose a 25% tariff on Canadian imports, worrying those in the industry. "This is a real threat to our economy," said Michael Carmichael, CEO of UpAuto.
Forecast for 2025
Despite these challenges, experts predict moderate growth:
- DesRosiers Automotive Consultants table on 1.84 million vehicles sold.
- AutoForecast Solutions envisages a return to the threshold of two million sales, although this objective will be revised downwards.
Sam Fiorani, Vice President of AutoForecast Solutions, said: “Growth is expected, but reaching two million units will be difficult.”
A fragile recovery
While 2024 marks a recovery year for the Canadian auto market, political, economic and incentive uncertainties for electric vehicles could weigh on 2025. SUVs and electric vehicles will likely remain at the center of trends.
With information from Automotive News Canada
The text New car sales in Canada in 2024 comes from L’annuel de l’automobile – Automotive news
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