Despite all the uncertainties related to the automotive market, Canadian consumers are showing up at dealerships, as evidenced by the country's sales figures for the month of July.
Over the last month, 172,000 vehicles were sold from coast to coast, a 6.9-percent increase compared to the same period in 2024. In fact, the sales total came close to beating the all-time record for the month, which was 174,000 vehicles sold in July of 2019.
The published figures were compiled by consulting firm DesRosiers, which stated that the retail sector has shown “resilience” in the face of the trade war set off by the Trump administration. That war led Canada to implement 25-percent retaliatory tariffs on automotive imports.
Rougher seas ahead
DesRosiers warned that the effects of the counter-tariffs have not yet been fully felt, as many of the sales were of vehicles already in inventory, so imported into Canada before the customs duties took effect.
The automotive industry continues to face uncertainty related to ongoing trade negotiations. Some manufacturers have begun to revise their cost estimates upwards in response to the tariffs.
Representatives at other automakers, speaking on the condition of anonymity, have told us that they will absorb the cost of the tariffs for the moment, but only in the short term. If tariffs remain in place, the added costs will be passed on to the consumer.
We will also have to monitor when and how the Canadian electric vehicle purchase incentive program will be relaunched. This always has an effect on sales. Stated DesRosiers, “The Canadian industry and consumers are in great need of clarity and realism from the federal and provincial governments regarding future zero-emission vehicle mandates and rebates.”