New motor vehicle sales

The withdrawal of some incentive programs in January contributed to the 14.1% drop in the number of new motor vehicles sold during the month. This is the steepest drop since January 1998, when the ice storm slowed new motor vehicle sales in the affected provinces.

Motor vehicle dealers sold 129,036 new vehicles in January, down 21,145 units from the peak reached in December. This decrease was primarily due to plunging sales of North American-built passenger cars (-17.6%) and trucks in general (-17.3%). Trucks include minivans, sport-utility vehicles, light and heavy trucks, vans and buses.

Despite sizable fluctuations in recent months, new motor vehicles sales have remained at relatively high levels since the beginning of 2002. Previously, sales had experienced a period of exceptional growth in the fourth quarter of 2001.

Preliminary figures from the auto industry indicate that in February, new motor vehicle sales turned around, making up much of the ground lost in January.

Overseas-built cars continue to be popular

The appeal of overseas-built cars to consumers continued in January, while the withdrawal of some incentives contributed to the major drop in sales of North American-built vehicles.

Passenger car sales were down 11.3% in January to 72,184 units, cancelling out December's gain. The decline is entirely attributable to weak sales of North American-built cars, which plunged 17.6% in January.

Meanwhile, sales of overseas-built cars rose 3.3% from December to 25,184 units, continuing an upward movement that began in the summer of 1997.

The high and relatively stable level of new passenger car sales since the start of 2002 has faltered in recent months. Previously, sales had followed an upward movement since the start of 2001.

In January, the number of new trucks sold plummeted 17.3% from December to 56,852 units, returning to the level of September 2001, just before a period of exceptional growth in the fourth quarter of that year. January's drop followed a 1.8% rise in December, which had pushed truck sales to their highest level since December 1997.

Except for January, truck sales have been moving upward since the summer of 2002, after remaining stable during the first half of the year.

Sales decline across Canada

In January, new motor vehicle sales were down from December in all provinces, but the decrease was much smaller in the region formed by British Columbia and the three territories (-0.9%). This region had reported one of the weakest sales increases in December (+1.1%).

New motor vehicle sales in the region formed by British Columbia and the three territories have been trending downward since the summer of 2002. Previously, they had gone through a period of strong growth that began at the start of 2001.

Alberta (-9.5%) and Quebec (-12.5%) were the only other provinces to post declines smaller than the national average. New vehicle sales in Alberta have been moving down since the summer of 2002. Previously, they had experienced a period of growth starting in early 2001. In Quebec, new motor vehicle sales have slowed in recent months, following a period of generally rising sales that began in the fall of 2001.

Available on CANSIM: tables 079-0001 and 079-0002.

Information on methods and data quality available in the Integrated Meta Data Base: survey number 2402.

The January 2003 issue of New motor vehicle sales (63-007-XIB, $13/$124) will be available soon.

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