New-vehicle gross sales in 2022 fell 8.8 per cent in contrast with 2021, and the market for 2023 will be impacted by record-high transaction costs, stock woes and a looming recession.
“The massive query that lies forward would be the stability between improved automobile stock, pent-up demand and deteriorating financial circumstances,” stated Andrew King, managing accomplice at DesRosiers Automotive Consultants. “It may nicely be that automobile gross sales in Canada climb even because the nation enters a recession.”
Gross sales of 1.50 million light-duty autos in 2022 have been reported by the Automotive Information Analysis & Knowledge Heart in Detroit. Few forecasters are going out on a limb for 2023, however U.S.-based AutoForecast Options predicts gross sales of 1.6 million. Scotiabank Economics on Jan. 18 stated in its International Auto Report it expects Canadian gross sales to succeed in 1.65 million.
New-vehicle pricing continues to rise, despite interest-rate hikes. These will increase a possible affordability drawback, warned Robert Karwel, senior supervisor, automotive follow Canada, at J.D. Energy.
Until recently, Canadians have been capable of affording excessive costs when rates of interest have been “silly low,” Karwel stated. “Our concern for 2023 is cost affordability which might be drastically affected as automakers are spending near-record lows on incentives.”