Canadian new light vehicle sales in April plunged 74.6% year over year
to an estimated 45,833 units, as consumer activity was limited by the
first full month of lockdown measures implemented in response to the
coronavirus pandemic, DesRosiers Automotive Consultants said Tuesday.
The sharp drop in the country's automotive demand follows a similar
trend in March, when light vehicle sales fell 48.3% to about 95,000
units compared with March 2019 numbers, according to DesRosiers data.
"This year, sales began to drop aggressively in the second half of
March with lockdowns and closures only beginning in earnest already well
into the month," DesRosiers said in a report. "April, on the other
hand, was the first full month where quarantine measures were
pervasive."
DesRosiers said the Canadian automotive sales declines in March and
April were the worst since a 27.7% year-over-year fall was recorded in
February 2009.
Year-to-date sales through the end of April are now estimated to be
trending down 36.7% compared with the same period in 2019, DesRosiers
said. Last month, the consultant reported that first-quarter new light
vehicle sales in Canada totaled 329,108 units, down from 411,465 units
in Q1 2019.
The dismal April sales, however, could represent the low point for Canada's automotive market in 2020, the consulting firm said.
"Politicians throughout Canada have begun to speak about re-opening
the economy and beginning the process of returning things to a 'new
normalcy', seemingly as early as May in some cases," DesRosiers said.
"This could mean that April 2020 results brought us to the bottom of
this chasm and the first tentative steps of recovery can potentially
start as early as next month."
Among North America's Big Three automakers, Ford said last week it
was working to safely restart vehicle manufacturing at its facilities in
the US and Canada, though specific return-to work-dates had not yet
been determined for most of its workers. Meanwhile, the company said it
was assisting dealerships to prepare showroom re-openings.
Fiat Chrysler is planning to restart some vehicle production at all
but one of its North American facilities during the week of May 18, CEO
Michael Manley said during a call with investors.
General Motors has not yet announced plans to resume automotive manufacturing.
