Canadian auto sales grew 4.7% this July from a year earlier, fueled by incentive programs and a strong surge at Japanese automakers whose production was crippled after last year's earthquake and tsunami.
Overall auto sales rose to 148,184 last month, compared to 141,472 in the year-earlier period, according to data from DesRosiers Automotive Consultants.
In total, Canadian auto makers have sold 1,013,094 vehicles this year, up 6.7% from the 949,244 they sold by this time a year ago.
Those incentives — such as 0% financing and employee discount programs offered by Ford — helped buyers shrug off worries about the European financial crisis that weakened sales in April.
At the Detroit big three automakers — GM, Ford and Chrysler — sales were up a slight 0.4% as they continued to lose market share to import nameplates, which saw a 9.1% rise over last August. Foreign brands now corner the bigger share, 54.6%, of the Canadian market.
Japanese automakers made strong gains in sales last month, compared to a year ago when they couldn't supply enough models to showrooms after production was hobbled by a March earthquake.
Japanese automakers lead the way
Toyota Canada Inc. says its sales were up 30% from last July. The automaker sold 15,819 Toyota, Lexus and Scion passenger cars, SUVs and trucks last month.
Meanwhile, Honda's sales were up 27% from a year ago, with gains helped by record sales of the CR-V sport utility vehicle and the Acura RDX and TL.
Combined sales by Honda and Acura in July totaled 11,184 vehicles.
However, Nissan Canada Inc. reported sharp drop in July sales to 5,316, down 29.3 per cent from a year ago when the company sold 7,523 vehicles.
Analyst Dennis DesRosiers said Nissan and Mitsubishi were caught at weak points in their product cycles and "have yet to join the Japanese rally."
"While the story of Japanese recovery has been told primarily through the larger brands, lower volume original equipment manufacturers Subaru and Suzuki flexed their market muscles last month," said DesRosiers.
Subaru's sales shot up 23.3% compared to a year earlier, while Suzuki's were up 9.8%, said DesRosiers.
Ford Motor Company of Canada Ltd. also had a strong month for sales, posting its best July in more than three decades as it laid claim to the title of the country's top-selling automaker for the month.
The automaker said it sold 27,940 vehicles last month, up 2.2% from 27,344 in July last year, marking the company's best July since 1979.
The gains were helped by sales of the Explorer and F-Series trucks that gained 18% and 20% respectively. Sales of crossover utility vehicles Edge and Flex also jumped 44% and 72%
Chrysler Canada also posted its best July sales as it reported a 3% increase from a year ago.
The company said it sold 24,162 vehicles in the month, up from 23,385 a year ago, helped by strong sales of its Grand Caravan, Ram, and Wrangler.
Meanwhile, General Motors Canada sold 19,206 vehicles, down 5.6% from the 20,345 it sold last July.
South Korean automaker Hyundai posted a record for July and sold 12,850 units, up 0.8% over the same month last year.
Kia sold 7,683 vehicles for the month, up 20.4% compared with July 2011.
In the U.S., General Motors and Ford also lost ground to Japanese automakers last month.
GM's July sales fell 6% from a year earlier, while Ford's slipped 4%. By contrast, Honda sales leaped 45% while Toyota posted a 26% gain. Chrysler also did well, notching its best July in five years.
