B.C. ranks fourth among new vehicle markets in Canada
As a key economic indicator, mid-year national new car sales numbers are indicating the economy remains strong in many parts of Canada including, British Columbia.
According to DesRosiers Automotive Reports, nationwide sales are up nearly five per cent this year and, for the first time ever, Canada is on pace to hit two million in annual new vehicles sales.
In fact, 2017’s year-to-date sales hit the one million mark in June, with a total of 203,486 new units sold across the nation in June alone.
British Columbia, in particular, is a huge contributor to the astounding number of sales. We are the fourth largest new car market in the country, behind Ontario, Quebec and Alberta, with 23,191 new vehicles sold in just the month of May.
To compare, May of last year saw sales of 20,862 new vehicles; this year’s number is an 11.2 per cent increase from 2016.
According to DesRosiers, every month this year with the exception of April has been a recordsetting month for new car sales in Canada. Out of the 26 auto manufacturers, 23 recorded sales increases for the month of June.
It’s no surprise, with all the new ideas and technology coming out of the auto industry lately, to see consumers choosing to purchase new vehicles now.
More importantly, prices for new vehicles remain at near historic lows. Pricing for a new car hasn’t changed much dating back to 2000. Back then the average price of a new vehicle was in the $24,000 to $26,000 range. Now in 2017, the average price has moved to the $26,000 to $27,000 range. That is a nominal price increase over the last 16 years.
The auto industry has never been more exciting with new innovations like the development of autonomous cars and the rise of electric vehicles (EVs). British Columbia especially, is a leader in EV adoption, dominating EV sales nationwide, alongside Quebec and Ontario.
EV sales have also seen an upward trend through the first quarter of 2017, with over 32,000 EVs in the total Canadian market as of March this year, according to numbers from FleetCarma. Although third for provincial EV sales, we are in first place for EV adoption, hitting four per cent of all passenger car sales in March. As charging infrastructure starts to catch up with EV sales, we can expect even more of these greener cars on our highways.
In Western Canada, economic growth for the new car industry is definitely on the upswing given what we’ve seen so far. Throughout the country, growth projections are strong for the remainder of this year and into the next. Auto note: Summer break is in full swing. According to stats from ICBC, five pedestrians aged five to 18 die and another 250 are injured in collisions involving a vehicle in the province. Every year, 73 youth cyclists are injured in collisions in the Lower Mainland. Be alert, particularly near playgrounds and near youth riding their bikes.