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The Daily. Thursday, June 14, 2001

New motor vehicle sales

In April, new motor vehicle sales by dealers were up 5.9% from March, the largest monthly increase since December 1999. This was the fifth increase in six months; the only decline was reported in February 2001 (-3.9%). However, April sales were 3.6% short of the peak reached in September 2000, the month before sales plunged 11.2%.

Dealers sold 134,372 new vehicles in April, 7,428 more than in March. This increase is attributable to sales of both new passenger cars and trucks. April sales were stimulated in part by incentives offered by some automobile manufacturers seeking to recapture lost market share.

April's gain marks a turnaround in new motor vehicle sales, following a downward movement that began in the fall 2000. Before that, sales had been fairly stable since the start of 2000. Previously, new motor vehicle dealers had seen robust growth since late 1998.

Preliminary figures from the auto industry show fewer new motor vehicles sold in May, primarily because of a drop in truck sales. Trucks include minivans, sport-utility vehicles, light and heavy trucks, vans and buses.

Note to readers All data in this release are seasonally adjusted (unless otherwise indicated). Seasonally adjusted provincial data from January 1991 are available on CANSIM. Passenger cars include those used for personal and commercial purposes, such as taxis or rental cars. Trucks include minivans, sport-utility vehicles, light and heavy trucks, vans and buses. North American-built new motor vehicles include vehicles manufactured or assembled in Canada, the United States or Mexico. All other new motor vehicles are considered to have been manufactured overseas. For reasons of confidentiality, Yukon, the Northwest Territories and Nunavut are included in British Columbia.

Sales up for both passenger cars and trucks

Sales of new passenger cars rose for a second straight month. In April, sales in this category advanced 5.8% from March, when the increase was 0.6%. Both North American-built passenger cars (+5.4%) and those built overseas (+7.0%) contributed to April's sales gain.

The increases observed in March and April ended the downward movement in new passenger car sales since the fall of 2000. Previously, sales had been generally rising since late 1998.

As with passenger cars, new truck sales advanced for a second straight month. They were up 5.9% in April to 63,044 vehicles.

April's gain follows fairly stable truck sales in recent months. Prior to this, sales had been declining since the summer of 2000, following another stable period going back to the summer of 1999.

Average price of new passenger cars was down slightly

The average selling price, unadjusted for seasonality, of a new vehicle in April was $27,925, a price practically unchanged (-0.2%) from the same month in 2000. Over the same one-year period, the average price of a new truck (excluding most heavy trucks and buses) rose 1.4% to $32,417. The average price of new passenger cars was $24,422 in April 2001, down 1.8% from the same month in 2000.

North American-built cars sold for an average of $23,571 in April, down 0.9% from April 2000. The average price of North American-built passenger cars has remained relatively stable since the fall of 1999.

New overseas-built passenger cars sold for an average of $26,522 in April, down 5.6% from April 2000. The average price of overseas cars is subject to some volatility.

The average price reflects actual price movements, owing in part to incentives offered by manufacturers, as well as consumer preferences. Consumers have their choice of available models, optional equipment and changes to standard equipment. These factors influenced the average price to varying degrees.

Sales up in almost all provinces

The number of new motor vehicles sold in April was up from March in all provinces except Newfoundland (-0.4%). That decline followed a major increase (+18.8%) in March. New motor vehicle sales in Newfoundland have stabilized in recent months, following decreases that began in the summer of 2000.

The largest gain compared with March occurred in Manitoba (+16.6%), following drops in March (-0.2%) and February (-8.3%). Despite this gain, new motor vehicle sales in Manitoba were more or less at the same level as at the start of 1999.

The second largest sales increase in April occurred in New Brunswick (+11.8%). This second consecutive monthly sales gain in New Brunswick halted a downward movement of sales that began in the fall of 1999.

Quebec (+6.6%), Prince Edward Island (+6.1%) and Ontario (+6.0%) also posted sales gains above the national average. For Quebec and Prince Edward Island, this was the second consecutive increase; Ontario's gain in April followed two successive declines.

Available on CANSIM: tables 790001 and 790002 and matrix 64.

The April 2001 issue of New motor vehicle sales (63-007-XIB, $13/$124) will be available soon.

For data or general information, contact the Client Services Unit (1-877-421-3067; 613-951-3549; retailinfo@statcan.gc.ca). For analytical information, or to enquire about the concepts, methods or data quality of this release, contact Clérance Kimanyi (613-951-6363; kimacle@statcan.gc.ca), Distributive Trades Division.

New motor vehicle sales