Canada’s automotive sales fell 3.9% in April as rising gas prices kept consumers on the sidelines during the start of the busy spring sales season.
DesRosiers Automotive Consultants said April’s automotive sales were down from a year ago but still maintained a “reasonable selling pace” given the economic environment.
The consultancy estimates 178,000 vehicles were sold across Canada during April, down 3.9% from a year earlier.
DesRosiers said trade tensions and soaring gas prices at the pumps likely put many Canadians off a new vehicle purchase in April.
Notably, sales of electric vehicles in Canada cooled in April after registering a slight increase in March of this year.
However, electric vehicle sales could get a boost in coming months as Tesla (TSLA) brings back its Model 3 vehicles at a lower price in Canada.
The federal government in Ottawa replaced its electric vehicle rebate program with an EV affordability program in February of this year.
The new program provides a rebate of up to $5,000 on car purchases with a final value of $50,000 or less.
The stock of Tesla, a leading electric vehicle maker, is down 11% this year and trading at $388.75 U.S. per share.
