February car sales down from 12 months back because of to lockdowns, provide chain disruptions

TORONTO — Canadian automobile sales in February have been down nearly 10 for every cent as opposed with February 2020, the past total month just before the lockdowns began owing to the COVID-19 pandemic.

In accordance to estimates compiled by DesRosiers Automotive Consultants, car profits very last month totalled 112,654 models, down from the 125,059 units of February 2020.

In spite of some lifting of pandemic limits, significantly of the state was nevertheless in numerous degrees of lockdown in February, DesRosiers stated on Wednesday. These, merged with microchip source chain disruptions, led to a fall in light car product sales, the agency stated.

Canadian light-weight car manufacturing was previously down to its most affordable ranges because 1982 in 2020, the consulting agency pointed out in a separate report last month. COVID-19 was a aspect, but Canada also dropped floor to the U.S. and Mexico previous calendar year, DesRosiers Automotive Consultants managing spouse Andrew King claimed in that report.

The offer chain of autos has been even more strained by a all over the world laptop or computer chip shortage. Normal Motors said its CAMI plant in Ontario would be idle for at minimum a 7 days this spring amid the chip scarcity, and a Brampton, Ont. Stellantis plant was down in January. Canadian auto parts maker Magna Global Inc. not too long ago explained it is hoping that generation can capture up from the chip shortage by the end of this 12 months.

The shift of prospective buyers absent from autos towards the gentle truck sector also continued previous thirty day period, DesRosiers stated. Mild vehicles accounted for 83.5 per cent of the marketplace in February in contrast with 78.9 for each cent a year ago. 

The relative reputation of vans is an ongoing trend has also been noted by Data Canada. The agency mentioned that though income of light trucks, large vans and buses ended up down four for each cent in November from the 12 months prior, passenger motor vehicle revenue fell 20.5 for every cent that month.

Hyundai, for case in point, stated on Wednesday that the Kona crossover was its most popular car for Canada in February, with product sales up 27.6 per cent from the very same month final calendar year, when gross sales of the Palisade SUV grew 37.8 per cent.

“While semiconductor-joined creation woes deepened in North The usa, mild automobile revenue in Canada and the U.S. managed to truck along in February,” mentioned a analysis be aware by Erik Johnson, economist at BMO Economics.

“Abnormal price savings could raise demand as regions open up, and automakers count on provide chain challenges to take care of in (the 2nd fifty percent of the yr). Right until then, product sales progress may perhaps be sluggish, though price ranges could head higher.” 

This report by The Canadian Push was initially printed March 3, 2021.

Anita Balakrishnan, The Canadian Push