Given the announcements last week by the Federal Government regarding Canada’s immigration targets, we at DAC thought it would be timely to look at the Canadian new light vehicle sales market from a population perspective. Due to the pandemic and semiconductor shortages, sales decreased dramatically in 2020 and remained down as vehicle shortages held back the market in 2021 and 2022. However, amidst this environment, one factor that does not receive enough consideration is the rapidly increasing Canadian population.
Between 2017 and 2022 the number of Canadians of driving age (defined broadly as 15+ years) increased by a stunning 2.2 million people. Putting this into a sales perspective, sales of new light vehicles among reporting manufacturers reached 67 units per 1000 people (aged 15+ years) in the peak sales year of 2017. With declining sales and an exploding population this number decreased by a remarkable 32% by 2022, to only 45 vehicles per 1000 driving aged population. “When population growth is taken into account, the ground that the Canadian new light vehicle sales market needs to re-capture widens” commented Andrew King, Managing Partner at DAC. “However, 2023 has seen a pattern of sustained sales increases thus far and rising population should support additional market demand in the medium and long terms.”
Azarov, D. (2023, November 8). The Impact of Canada’s Exploding Population on Vehicle Sales. DesRosiers automotive reports.