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New motor vehicle sales
September 2005
The number of new motor vehicles sold fell 7.9% in September, after declining 8.7% in August. In all, 127,437 new vehicles rolled out of dealers' showrooms in September. This was the second lowest level of monthly sales in 2005 and a decrease of approximately 10,800 units compared to August.

Despite the declines observed in August and September, sales of new motor vehicles advanced 1.6% in the third quarter on the basis of very strong sales in July. The latter were mainly boosted by the introduction of new incentive programs, in particular special discounts usually reserved for employees. August's decline occurred despite the availability of these programs, which seemed to have lost their effect.

For a second consecutive month, trucks were responsible for at least 80% of the national decline. Trucks include minivans, sport-utility vehicles, light and heavy trucks, vans and buses.

Based on preliminary figures from the auto industry, the number of new motor vehicles sold in October rebounded by approximately 3%, with the gain mainly attributable to trucks.

The upward movement of new motor vehicle sales since the start of 2005, while exhibiting strong monthly fluctuations, has faltered in recent months. New motor vehicle sales remained relatively stable in 2004, after a series of increases early in the year.

Erosion of truck sales continues
In September and August, sales of both passenger cars and trucks fell, following two months of consecutive increases. However, the declines were steeper for trucks than for passenger cars, with truck sales posting the largest decreases since October 2000.

The number of new trucks sold in September fell 13.5% after posting an equivalent decline a month earlier. A total of 56,998 new trucks were purchased in September, down approximately 8,870 units from August.

In September, the number of new passenger cars sold slipped 2.8% compared to August, standing at 70,439 units. Both North American-built and overseas-built cars contributed to this decline.

Quarterly sales favour cars
New motor vehicle sales in the third quarter rose 1.6% compared to the second quarter, when they advanced 1.3%. This increase is entirely attributable to passenger cars. For the same period, passenger car sales rose 3.4% whereas truck sales edged down 0.3%.

Sales of new motor vehicles advanced a hefty 6.7% in the third quarter compared to the same quarter in 2004, with both passenger car (+7.3%) sales and truck (+6.1%) sales registering sizable increases.

Figures for the second and third quarters of 2005 also show that passenger cars strengthened their market share, which reached 52.4% in the third quarter compared to 51.5% in the second.

Sales down almost everywhere in Canada
New motor vehicle sales were down in every province in September except in Newfoundland and Labrador, where sales increased by 0.8%. However, Newfoundland and Labrador had registered the largest decline one month earlier.

New motor vehicle sales fell for the second month in a row in Ontario, dropping 9.2% in September and accounting for 44% of the national decrease. In the other provinces, the decline posted in September was also the second in a row, except for the region formed by British Columbia and the territories, where sales had advanced in August.

 

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