Auto sales cruise to a new record in 2015
It’s official — the 1.9 million new vehicles purchased by Canadians is the most ever
There was little question that 2015 was going to be a recordbreaking year for car sales, but now the numbers are officially in.
According to DesRosiers Automotive Consultants, Canadians bought 1.9 million new vehicles this past year, breaking the previous record set in 2014 by 2.5 per cent or more than 47,000 vehicles (for the top 10, see page 1).
The Canadian auto industry is booming. Driven by low financing rates and low fuel prices, people are buying more cars than ever before. What’s more, the market is flooded with vehicles that boast top-of-theline technology, great fuel economy and incredible variety, all at affordable prices.
We’re not the only ones doing well. Our neighbours to the south also had a record-breaking year for the first time since 2000. In 2015, U.S. dealers sold 17.5 million vehicles, beating pre-recession sales levels for the first time ever.
The truck segment, which includes SUVs, pickups, minivans and crossovers, drove most of the Canadian growth for 2015. In December, trucks reached 68.3 per cent market share, an industry first. Year over year, truck sales have increased by a whooping 8.8 per cent.
Manufacturers are already focusing heavily on this growing segment and as more people choose to purchase SUVs and crossovers, investments will only increase.
Another segment doing well is luxury vehicles. With many brands offering more affordable options, luxury sales have reached an alltime high. Driving sales in this segment is — you guessed it — the luxury SUV.
While luxury sales are thriving across Canada, one of the strongholds is Metro Vancouver. Huffington Post recently reported Vancouver is the luxury capital of North America.
ICBC statistics back up this statement. More than 2,000 vehicles registered in the Metro Vancouver area have a price tag of over $150,000. Statistics per city work out to one out of every 615 people in Vancouver and an incredible one out of 142 people in West Vancouver owning a luxury vehicle.
Even with an overall sunny outlook, there were a couple of sales surprises this past year. One of the biggest was December sales numbers, which, contrary to most predictions of growth, actually declined by 1.9 per cent. According to DesRosiers Automotive Consultants, this decline represented the first in 32 months.
However, most agree December numbers aren’t a sign of things to come. In both the luxury and truck segments, experts predict sales will only increase.
According to Michael Hatch, chief economist for the Canadian Automobile Dealers Association, though the rate of growth may slow due to sluggish economic growth allaround, 2016 will be another record year.
Boosted by an ever-growing collection of new and redesigned models being announced, new vehicle sales will continue to grow in the coming year. During a time when most retail sectors are suffering, new vehicle sales represent a step in the right direction toward a thriving economy.
If you want to see a sampling of the new makes, models and technology driving this economic growth, make sure to check out the 2016 Vancouver International Auto Show at the Vancouver Convention Centre from March 23 to 27. Stay up to date on the latest contests, prizes and giveaways by following hashtag #VanAutoShow16 on social media.
Blair Qualey is president and CEO of the New Car Dealers Association of B.C. You can email him at bqualey@newcardealers.ca.