Economics anticipates auto markets facing a multi year recovery with pre-crisis sales activity not likely to return until 2023 at the earliest.
In its North American Auto Markets Prepare for Reboot report, Scotiabank anticipates a new car sales decline of close to 30% year over year in Canada by end of 2020. The report sees new vehicle sales picking up in May, with potential for new demand from heightened fears around using public transportation.
The report goes on to indicate that while used auto sales may pick up some of the slack, they will not be immune, experiencing 10% declines due to weaker demand in Canada and the U.S. While new vehicle production will be constrained by supply chain disruptions, physical distancing measures and other factors, the report anticipates used vehicle supply to surge, due to off lease, commercial fleet and daily rental vehicles hitting the used market at an accelerated pace.
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