Consumers in Canada and U.S. Set Record Sales in 2016
Despite the drop in oil prices that resulted in lower sales for Albertans, Canadian and American automakers had record sales years in 2016. For the fourth consecutive year, Canadian automakers have exceeded their previous year’s sales.
In the Canadian sales race, Ford took the top spot with a 9% increase in deliveries, ahead of FCA Canada, which was the top dog in 2015. Automakers are noting consumers’ change of interest, specifically the shift from passenger cars toward trucks and SUV’s. This shift has affected their investments on a factory level across Mexico and the United States. In 2016, Nissan’s Rogue crossover surpassed the Altima as their best-selling vehicle, and the Ford F-Series outsold their passenger cars.
Despite the booming growth in 2016, experts anticipate a slight decline coming up in 2017. Dennis DesRosiers of DesRosiers Automotive Consultants Inc. expects a 3% decrease in sales for the Canadian Market. However, DesRosiers recognizes that a stabilizing and growing economy could push for another record breaking year in 2017. But no matter which way the sales go for 2017, experts agree that the Canadian auto market is not destined for failure, and sales likely won’t differentiate by more than 5%.
Only time will tell whether the Canadian auto industry will thrive for a fifth year, or whether sales will decline. But one thing is for certain – it won’t break us. Douglas Porter, BMO chief economist said, “Even as the broader Canadian economy has struggled in the past two years, the consumer has just kept chugging along.”
What do you think the Canadian auto trends will be this year? Let us know in the comments below!