Canadian vehicle sales totalled 1.98 million units for 2018. While falling short of 2017’s record 2.04 million units, 2018 tallied the second highest vehicle sales total on record. While 2018 sales started out strong, there has been a pronounced downward trajectory since early in the year, with December sales contracting for the tenth consecutive month. The sales decline was expected, due to slowing economic growth, subdued employment gains and rising interest rates. Scotiabank forecasts 2019 sales to dip further to 1.93 million units amid a continuation of the Bank of Canada’s tightening cycle and muted job gains with the economy sitting near full employment.
Light trucks sales dominated 2018 vehicle sales, accounting for more than 70 percent of the market. According to DesRosiers Automotive Consultants, consumer interest in light trucks saw a surge following the last economic downturn in 2008 and hasn’t looked back since. Breaking light trucks out, compact and sub-compact SUV’s led the charge of the light truck brigade