Canada’s Automotive Sales Fall 13% In April As Inflation Remains Elevated

Canada’s automotive sales were down 13.3% in April compared to a year earlier as inflation and
an ongoing shortage of semiconductors continues to hurt sales, according to DesRosiers
Automotive Consultants.

The consultancy estimates that 140,785 new light vehicles were sold in Canada during April,
barely higher than the 140,460 that were sold in March of this year and well off the April 2021

DesRosiers said the seasonally adjusted annual rate of sales for April came in at 1.44 million for
the month, down from the 1.66 million for April a year earlier when sales first started to fall due
to supply shortages.

The automotive industry has been struggling with computer chip shortages caused by a
combination of manufacturing disruptions due to the pandemic and heightened demand for the
microchips in other industries.

At the same time, inflation in Canada is currently at a 30-year high, leading to elevated prices
for items ranging from groceries and gasoline to hotels and vehicles. The Bank of Canada has
begun raising interest rates to cool off inflation, which leads to higher financing and lease costs
for automotive purchases.