Automotive News Canada - June 2024 - 21

* JUNE 2024
21
Bank rate cut to 4.75% unlikely to rescue a tumbling SAAR
May sales are up, but the
seasonally adjusted rate
of 1.63 million vehicles is
the lowest of the year
By GREG LAYSON
DIGITAL AND MOBILE EDITOR
MAY'S NEW-VEHICLE SALES
results are sending mixed messages about
the health - and potential growth - of
the industry.
DesRosiers Automotive Consultants
(DAC) said light-vehicle sales rose 5.7 per
cent in May from the
same month last year
as the market continSALES
ANALYSIS
ues to recover from the lows during the
COVID-19 pandemic.
DAC estimated 169,000 sales for the
month, up from about 160,000 in May 2023
and well above the " pitiful " 141,000 sold in
May 2022, which marked the height of the
global semiconductor shortage.
Monthly sales totals are estimates
because most automakers report sales
only quarterly. Just 10 brands - about
one-quarter - still report monthly.
Auto sales have seen 19 consecutive
months of year-over-year gains, said
DAC Managing Partner Andrew King.
However, it has been five years since sales
of new light vehicles in Canada exceeded
200,000 in a month - when May 2019 came
in at 202,000.
Still, DAC said sales this May were " a
step in the right direction. "
SAAR SLIDE
But on the other side of the sales coin,
DAC said the seasonally adjusted annual
rate of sales (SAAR) of 1.63 million vehicles
was the lowest so far this year. SAAR
is a rate adjustment used to account for
changes in data due to seasonal
variations.
" It is somewhat concerning
- if not unexpected
- that the SAAR
appears to be trailing
off from the levels hit in
January and February,
when pent-up demand
fueled the market to lofty
heights, " King said.
In February, the
SAAR reached 2.1 million
because of a combination
of pent-up demand
and unseasonably warm
weather that spurred buying.
" The
market continues
to move forward, albeit supported by
an increasing range of subvented interest
rates and other incentives, " King said.
In its June newsletter, AutoForecast
Solutions, based in Pennsylvania, said it
still expects 1.92 million sales in Canada
this year.
RATE RELIEF
ing, though.
A sales boost might now be in the makOn
June 5, the Bank of Canada
trimmed its key policy rate by 25 basis
points to 4.75 per cent from 5.0 per cent.
Canada light-vehicle sales by nameplate, MayMay & 5 mos. s.
Table refl ects Canada sales for those manufacturers that report monthly
May May % 5 mos. 5 mos. %
2024 2023
chng. 2024 2023
HONDA CANADA
ILX .........................................
2
-
3
chng.
29 -90%
Integra ................................... 120 192 -38% 277 394 -30%
TLX ........................................ 94 134 -30% 365 566 -36%
Total Acura car ................. 214 328 -35% 645 989 -35%
MDX ....................................... 379 200 90% 1,843 1,345 37%
RDX ....................................... 585 556 5% 2,381 2,491 -4%
Total Acura truck ............... 964 756 28% 4,224 3,836 10%
Total Acura ...................... 1,178 1,084 9% 4,869 4,825 1%
Accord ................................... 258 573 -55% 1,261 1,386 -9%
Civic (D/I) .............................. 3,409 3,217 6% 12,565 9,322 35%
Clarity (I) ...............................
Insight ...................................
-
-
1
1
-
-
Total Honda car (D/I) .......... 3,667 3,790 -3% 13,827 10,709 29%
CR-V ...................................... 5,060 6,480 -22% 21,755 18,270 19%
HR-V ...................................... 924 973 -5% 5,728 4,340 32%
Odyssey ................................. 386 467 -17% 1,532 2,047 -25%
Passport ................................ 289 257 12% 1,174 1,141 3%
Pilot ....................................... 555 884 -37% 2,408 2,821 -15%
Prologue ................................
6
-
6
-
Ridgeline ................................ 116 353 -67% 1,509 1,385 9%
Total Honda truck .............. 7,336 9,414 -22% 34,112 30,004 14%
Total Honda (D/I) ............... 11,003 13,204 -17% 47,939 40,713 18%
Honda Canada car ............. 3,881 4,118 -6% 14,472 11,698 24%
Honda Canada truck ........... 8,300 10,170 -18% 38,336 33,840 13%
HONDA CANADA ................ 12,181 14,288 -15% 52,808 45,538 16%
HYUNDAI-KIA
G70 (I) ................................... 70 138 -49% 396 429 -8%
G80 (I) ................................... 18
G90 (I) ...................................
2
24 -25% 74 179 -59%
3 -33% 11
21 -48%
Total Genesis car (I) ........... 90 165 -45% 481 629 -24%
GV60 (I) ................................. 23
35 -34% 106 162 -35%
GV70 (I) ................................. 395 286 38% 1,773 1,368 30%
GV80 (I) ................................. 123 116 6% 443 447 -1%
Total Genesis truck (I) ......... 541 437 24% 2,322 1,977 17%
Total Genesis (I) ............... 631 602 5% 2,803 2,606 8%
Elantra (I) ............................... 2,025 1,633
24% 7,801 8,796 -11%
Ioniq 6 (I) .............................. 302 265 14% 1,179 476 148%
Sonata (I) ............................... 232
69 236% 492 825 -40%
Total Hyundai car (I) ........... 2,559 1,967 30% 9,472 10,097 -6%
Ioniq 5 (I) .............................. 993 211 371% 3,488 1,633 114%
Kona (I) ................................. 3,124 1,498 109% 14,820 8,145 82%
Nexo (I) .................................
-
7
-
Palisade (I) ............................ 791 933 -15% 2,991 3,420 -13%
Santa Fe (D).......................... 1,019 1,048 -3% 3,945 3,777 4%
Santa Fe (I) ........................... 369 436 -15% 401 1,315 -70%
Total Santa Fe ........................ 1,388 1,484 -6% 4,346 5,092 -15%
Santa Cruz ............................. 207 435 -52% 1,120 1,682 -33%
Tucson (I) .............................. 2,759 2,265 22% 12,384 10,634 16%
Venue (I) ................................ 1,179 1,081 9% 4,752 4,784 -1%
Hyundai truck (D) .............. 1,226 1,483 -17% 5,065 5,459 -7%
Hyundai truck (I) ............... 9,215 6,424 43% 38,836 29,938 30%
Total Hyundai truck ............ 10,441 7,907 32% 43,901 35,397 24%
Hyundai (D) ..................... 1,226 1,483 -17% 5,065 5,459 -7%
Hyundai (I) ...................... 11,774 8,391 40% 48,308 40,035 21%
Total Hyundai ................... 13,000 9,874 32% 53,373 45,494 17%
Hyundai Auto Canada car ..... 2,649 2,132 24% 9,953 10,726 -7%
Hyundai Auto Canada truck... 10,982 8,344 32% 46,223 37,374 24%
Hyundai Auto Canada (D) ..... 1,226 1,483 -17% 5,065 5,459 -7%
Hyundai Auto Canada (I) ...... 12,405 8,993 38% 51,111 42,641 20%
Hyundai Auto Canada ......... 13,631 10,476 30% 56,176 48,100 17%
Forte (D/I) .............................. 862 942 -8% 4,610 5,202 -11%
K5 ..........................................
Rio .........................................
2
1 496
May May % 5 mos. 5 mos. %
2024 2023
chng. 2024 2023
1
chng.
Soul (I) .................................. 158 155 2% 795 1,406 -43%
Stinger (I) ..............................
98 -99% 20 442 -95%
Total Kia car (D/I) .............. 1,024 1,779 -42% 6,106 9,545 -36%
Carnival (I) ............................. 405 656 -38% 1,827 2,958 -38%
EV6 (I) ................................... 887 183 385% 2,752 689 299%
EV9 (I) ................................... 515
- 1,347
-
Niro (I) ................................... 701 446 57% 2,851 1,160 146%
Seltos (I) ................................ 1,756 1,477 19% 9,228 8,903 4%
Sorento .................................. 922 487 89% 3,382 3,194 6%
Sportage (I) ........................... 1,648 1,792 -8% 8,397 6,492 29%
Telluride ................................. 351 473 -26% 1,265 2,215 -43%
Kia truck (D) .................... 1,273 960 33% 4,647 5,409 -14%
Kia truck (I) ..................... 5,912 4,554 30% 26,402 20,202 31%
Total Kia truck .................. 7,185 5,514 30% 31,049 25,611 21%
Kia Canada (D/I) ............... 8,209 7,293 13% 37,155 35,156 6%
Hyundai-Kia Automotive car... 3,673 3,911 -6% 16,059 20,271 -21%
Hyundai-Kia Automotive truck .. 18,167 13,858 31% 77,272 62,985 23%
HYUNDAI-KIA AUTOMOTIVE... 21,840 17,769 23% 93,331 83,256 12%
MAZDA CANADA
Mazda3 (D/I) .......................... 1,257 914 38% 4,387 4,068 8%
MX-5 Miata (I) ....................... 240 172 40% 585 683 -14%
Total Mazda car (D/I) .......... 1,497 1,086 38% 4,972 4,751 5%
CX-30 ..................................... 1,223 1,394 -12% 5,746 5,352 7%
CX-5 (I) .................................. 2,152 2,829 -24% 8,948 8,398 7%
CX-50 ..................................... 1,005 389 158% 3,809 1,404 171%
CX-70 (I) ................................ 437
CX-9 (I) ..................................
CX-90 (I) ................................ 587 438 34% 2,365 438 440%
MX-30 (I) ...............................
0 272
7
59 -88% 106 267 -60%
Mazda truck (D) ................ 2,228 1,783 25% 9,555 6,756 41%
Mazda truck (I) ................. 3,183 3,598 -12% 11,948 10,745 11%
Total Mazda truck .............. 5,411 5,381 1% 21,503 17,501 23%
MAZDA CANADA ................ 6,908 6,467 7% 26,475 22,252 19%
SUBARU
BRZ (I) ................................... 75 123 -39% 317 325 -2%
Impreza (D) ..........................
Impreza (I) ............................ 382
1 202 - 12 1,152 -99%
0 - 1,581
Total Impreza ......................... 383 202 90% 1,593 1,152 38%
Legacy ................................... 17
0 -
27 -37% 89 128 -30%
WRX (I) ................................. 285 720 -60% 1,136 1,609 -29%
Subaru car (D) .................. 18 229 -92% 101 1,280 -92%
Subaru car (I) ................... 742 843 -12% 3,034 1,934 57%
Total Subaru car ................ 760 1,072 -29% 3,135 3,214 -2%
Ascent .................................... 288 435 -34% 1,125 1,491 -25%
Crosstrek (D) ........................ 486
0 - 1,436
Crosstrek (I) ......................... 1,791 2,060 -13% 10,504 5,979 76%
Total Crosstrek ....................... 2,277 2,060 11% 11,940 5,979 100%
Forester (I) ............................. 1,375 437 215% 7,069 2,945 140%
Outback ................................. 1,187 1,101 8% 5,672 4,824 18%
Solterra (I) ............................. 106 141 -25% 982 651 51%
Subaru truck (D) ................ 1,961 1,536 28% 8,233 6,315 30%
Subaru truck (I) ................. 3,272 2,638 24% 18,555 9,575 94%
Total Subaru truck ............. 5,233 4,174 25% 26,788 15,890 69%
Subaru (D) ...................... 1,979 1,765 12% 8,334 7,595 10%
Subaru (I) ....................... 4,014 3,481 15% 21,589 11,509 88%
SUBARU .......................... 5,993 5,246 14% 29,923 19,104 57%
TOYOTA CANADA
ES .......................................... 105 144 -27% 402 523 -23%
IS (I) ...................................... 180 211 -15% 695 829 -16%
LC (I) ..................................... 28
LS (I) .....................................
1
RC (I) ..................................... 11
88 -98% 28 491 -94%
- 653 2,004 -67%
17 65% 72
3 -67% 11
21 -48% 54
33 118%
14 -21%
56 -4%
Lexus car (D) ................... 105 144 -27% 402 523 -23%
Lexus car (I) .................... 220 252 -13% 832 932 -11%
Total Lexus car ................. 325 396 -18% 1,234 1,455 -15%
- 500
-
-
29 1,642 -98%
It was a move that economists widely
expected and the first rate cut in four
years. The rate had been at 5.0 per cent
since last summer.
Reuss: The
Bank of
Canada's
rate cut is " a
very positive
signal for
automotive
consumers. "
FILE PHOTO
In a statement, the bank said that
" underlying inflation is easing " and that
" recent data has increased our confidence
that inflation will continue to move
towards the two-per-cent target. "
The Bank of Canada's cut in the
overnight lending rate is " a very positive
signal for automotive consumers, "
Tim Reuss, president of the Canadian
Automobile Dealers Association (CADA),
said in an email to Automotive News
Canada. " The fact that the interest-rate
easing is accompanied by higher new-vehicle
inventories at dealerships is a
strong signal that now is an excellent
time for consumers to step into the market. "
After
the Bank of Canada announced
its cut, economists predicted another
reduction in July.
Robert Karwel, senior manager of J.D.
Power's Canadian automotive practice,
said the news and forecast are good for
the Canadian consumer's psyche.
" This is bolstering the consumer mentality, "
Karwel said. " People are thinking
of mortgages, too. It eases some financial
pressure because a quarter-point on a
$300,000 mortgage makes a big difference. "
That money saved on a monthly mortgage
payment could be spent on a new
vehicle, for instance.
" With further and more sustained evidence
underlying inflation is easing,
monetary policy no longer needs to be as
restrictive, " Bank of Canada Governor
Tiff Macklem said in his opening remarks
following the rate cut.
BETTER SALES? BETTER WAIT
But the industry shouldn't expect a
rush of buying activity, Karwel said.
" In key core segments, don't look for
a lot of changes yet. " That particularly
applies to full-size pickups and large
SUVs.
" This is only a quarter-point, " Karwel
said, " but it helps in the long run. "
Consumers have been turning to smaller,
cheaper SUVs and crossovers, he
said. " Canadians are tapping out [of large
trucks]. They're buying a cheaper mix of
vehicles. " And those payments won't be
affected as much by such a small decrease
in the interest rate, Karwel said.
The annual percentage rate for all automotive
financing - bank loans, leases,
captive loans and financing through automakers
- stood at 5.95 per cent on June
5, he said, down from 6.25 per cent in
January.
HOW THEY FARED
Among the brands still reporting
monthly sales, only two saw their results
fall in May.
Honda brand sales were down 16.7 per
cent to 11,003 vehicles, while Lexus sales
dropped 16.6 per cent to 2,515.
Hyundai was the biggest gainer, up 31.7
per cent to 13,000 vehicles. Volvo sales
rose 18.9 per cent to 1,233 and Toyota's
increased 13 per cent to 21,155 vehicles.
-ANC
Vehicles are domestic unless noted.
May May % 5 mos. 5 mos. %
2024 2023
chng. 2024 2023
GX (I) ..................................... 118
chng.
66 79% 195 368 -47%
LX (I) ..................................... 74 142 -48% 304 426 -29%
NX (D) .................................. 509 838 -39% 3,097 4,443 -30%
NX (I) .................................... 39 100 -61% 342 473 -28%
Total NX ................................. 548 938 -42% 3,439 4,916 -30%
RX (D) ..................................
RX (I) .................................... 57
Total RX .................................
RZ (I) ..................................... 61
TX .......................................... 231
776 1,047 -26% 3,836 4,886 -21%
0 - 202
- 1,215
1 -
833 1,047 -20% 4,038 4,887 -17%
85 -28% 243 262 -7%
-
UX (I) ..................................... 325 341 -5% 1,303 1,012 29%
Lexus truck (D) ................. 1,516 1,885 -20% 8,148 9,329 -13%
Lexus truck (I) .................. 674 734 -8% 2,589 2,542 2%
Total Lexus truck ............... 2,190 2,619 -16% 10,737 11,871 -10%
Lexus (D) ........................ 1,621 2,029 -20% 8,550 9,852 -13%
Lexus (I) ......................... 894 986 -9% 3,421 3,474 -2%
Total Lexus ...................... 2,515 3,015 -17% 11,971 13,326 -10%
86 (I) ..................................... 166
51 225% 392 169 132%
11% 5,237 3,679
42%
2 200% 14
Camry .................................... 1,023 1,032 -1% 6,520 3,958 65%
Corolla (D) ............................ 1,477 1,333
Corolla (I) ............................. 1,281 1,542 -17% 6,945 5,656 23%
Total Corolla ........................... 2,758 2,875 -4% 12,182 9,335 30%
Crown (I) ............................... 83 148 -44% 438 476 -8%
Mirai (I) .................................
6
10 40%
Prius (I) ................................. 33 437 -92% 2,269 792 186%
Supra (I) ................................ 51
32 59% 137 129 6%
Toyota car (D) .................. 2,500 2,365 6% 11,757 7,637 54%
Toyota car (I) ................... 1,620 2,212 -27% 10,195 7,232 41%
Total Toyota car ................ 4,120 4,577 -10% 21,952 14,869 48%
4Runner (I) ............................ 384 805 -52% 2,104 2,369 -11%
BZ4x (I) ................................. 480 309 55% 2,217 1,256 77%
C-HR (I) .................................
-
- 3,392
2
56 -20% 194 217 -11%
-
Corolla Cross ......................... 2,105 868 143% 7,462 3,441 117%
Highlander ............................. 722 1,290 -44% 3,221 7,604 -58%
Grand Highlander ................... 912
Land Cruiser (I) ..................... 45
RAV4 (D) .............................. 6,989 6,498 8% 32,458 28,170 15%
RAV4 (I) ................................ 922 769 20% 4,110 3,082 33%
Total RAV4 ............................. 7,911 7,267 9% 36,568 31,252 17%
Sequoia .................................. 123
77 60% 370 196 89%
0 -
Sienna .................................... 1,014 546 86% 4,335 1,448 199%
Tacoma .................................. 1,573 1,708 -8% 3,895 5,465 -29%
Tundra.................................... 1,271 1,102 15% 5,690 4,017 42%
Venza (I) ................................ 495 116 327% 2,625 444 491%
Toyota truck (D) ................ 14,709 12,089 22% 60,823 50,341 21%
Toyota truck (I) ................. 2,326 2,055 13% 11,250 7,370 53%
Total Toyota truck .............. 17,035 14,144 20% 72,073 57,711 25%
Toyota (D) ....................... 17,209 14,454 19% 72,580 57,978 25%
Toyota (I) ........................ 3,946 4,267 -8% 21,445 14,602 47%
Total Toyota ..................... 21,155 18,721 13% 94,025 72,580 30%
Toyota Canada car ............. 4,445 4,973 -11% 23,186 16,324 42%
Toyota Canada truck ........... 19,225 16,763 15% 82,810 69,582 19%
Toyota Canada (D) ............. 18,830 16,483 14% 81,130 67,830 20%
Toyota Canada (I) .............. 4,840 5,253 -8% 24,866 18,076 38%
TOYOTA CANADA................ 23,670 21,736 9% 105,996 85,906 23%
VOLVO CAR CANADA
VOLVO CAR CANADA ........... 1,233 1,037 19% 5,069 4,450 14%
Note: (D) = produced in North America; (I) = imported to Canada
Source: Automotive News Research & Data Center
-
Automotive News Canada - June 2024

Table of Contents for the Digital Edition of Automotive News Canada - June 2024
