Canadian first-quarter auto sales plunge 20% as COVID-19 takes toll: consultants

  • Friday, April 3, 2020
  • Source:ferro-alloys.com

  • Keywords:Canada,auto sales
[Fellow]Canadian first-quarter auto sales plunge 20% as COVID-19 takes toll: consultants

[ferro-alloys.com]Effects from the coronavirus pandemic in Canada began pressuring the country's automotive industry in March new light vehicle sales during the first quarter plummeted 20% year on year, according to industry consultants.

"Sales through the first portion of the quarter appeared to be actually pretty good," said Global Automakers of Canada president David Adams in a report Thursday, adding:

"As the full impact of the COVID-19 virus became apparent in mid-March, and dealers either were forced to shut down due to emergency measures enacted, or voluntarily shut down due to minimal consumer traffic, the impact on sales has been dramatic."

Similarly, DesRosiers Automotive Consultants said Wednesday that new light vehicle sales in Canada were up in January and February, with only moderate declines in early March, before several provinces began declaring states of emergency in the second half of the month.

New light vehicle sales in Canada totaled 329,108 units in Q1, down from 411,465 units in Q1 2019, according to a report released by DesRosiers.

The sharp drop in March sales coincided with the closure of several automobile manufacturing facilities, including shutdowns implemented by North America's Big Three automakers -- Ford, General Motors and Fiat Chrysler.

"With COVID-19 cases continuing to climb and North American auto assembly plants largely shutting down, the outlook is for even greater sales declines in April and May," DesRosiers said.

Among the Big Three automakers, Fiat Chrysler saw the biggest year-on-year decrease in Q1 sales, recording an 18.8% drop to an estimated 44,140 units, according to the DesRosiers data.

DesRosiers said Ford held the top ranking in Q1 Canadian sales with an estimated 53,729 units sold.

Despite the slower sales, Adams said the automobile industry was trying to sustain itself and work with governments to keep service departments and dealerships open when possible.

"This will ensure that recall programs can be undertaken and that the vehicles of doctors, nurses, and other health care workers and other essential service providers can be kept operational in a safe working manner," Adams said.

DesRosiers said online vehicle sales still remained an option for customers amid dealership closures.

"However, hesitation and uncertainty dominate public opinion and most would-be vehicle buyers are putting off purchases for the time being," DesRosiers added.

(S&P Global Platts)

  • [Editor:王可]

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