Reported 5 months ago
In Canada, a rise in automotive sales is attributed to an influx of new immigrants and pent-up demand from consumers who were unable to purchase cars during the Covid-19 pandemic. Statistics Canada data revealed a 1% increase in car dealer receipts in March compared to the previous year, with a notable boost in retail sales. Despite an overall decrease in retail sales in March, excluding automobile and parts dealers, the sales dropped further. The country's population surge by 1.3 million last year has also contributed to the growth in the consumer base, thus boosting automotive retail sales. However, challenges such as heightened inflation and interest rates are affecting automotive dealers, although potential Bank of Canada interest rate cuts may alleviate some of these concerns. As supply chain issues improve and pent-up demand subsides, it is predicted that car sales will return to pre-pandemic levels by 2025.
Source: YAHOO