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Monday, December 13, 2004 New motor vehicle salesOctober 2004Strong demand for passenger cars led to a 7.7% rebound in new motor vehicle sales in October, following two consecutive monthly declines. However, according to preliminary auto industry figures, the number of new motor vehicles sold in November is estimated to have declined by 3.7%, mainly due to lower demand for passenger cars.
In all, consumers purchased 136,243 new vehicles in October, 9,700 more than in September and the second highest monthly sales level in 2004 after April. October was characterized by generous programs promoting the sales of new models.
Despite the substantial gain in October, cumulative sales for the first 10 months of 2004 remain 5.1% lower compared with the same period in 2003. New motor vehicle sales have been relatively stable in recent months, following a string of increases that began at the start of the year and peaked in April. Previously, sales had gone through a period of major declines throughout the second half of 2003. In the first half of 2003, sales showed sizable fluctuations while at the same time trending downward. Strong passenger car salesAlthough sales of both categories of vehicles rose in October, consumers had their hearts set on passenger cars, which accounted for two-thirds of the increase compared with September. Dealers reported selling 70,483 new passenger cars in October. This was an increase of 9.8% compared with September when sales fell substantially (-6.6%). The strength of the gain in overall car sales was mainly attributable to North American-built cars, which advanced 11.2%, fully offsetting the drop in September. Sales of overseas-built cars rose 6.2% in October. This was the second consecutive increase of roughly the same size. Sales of North American-built cars have been trending upward since the start of 2004, following a period of declines throughout the second half of 2003. Sales of overseas-built cars have generally been moving downward since the start of 2003. Previously, they had posted an upward trend starting in the fall of 1996. As for new trucks, 65,760 units were sold in October, up 5.5% from September. This increase followed two consecutive monthly declines. Trucks include minivans, sport-utility vehicles, light and heavy trucks, vans and buses. Sales of both passenger cars and trucks increased at the start of 2004, following a period of steep declines that were accentuated in the second half of 2003. This downward movement first appeared in sales of passenger cars, which began to decline in the fall of 2002. For truck sales, the weakness began to appear in mid-2003. Nearly all provinces post gainsThe number of new motor vehicles sold increased in October in all provinces except Prince Edward Island, where it remained almost unchanged from September when it was the only province to register an increase. For each of the other provinces, October's gain was one of the largest monthly advances in 2004. Quebec (+5.3%), the region formed by British Columbia and the territories (+4.4%) and Manitoba (+3.2%) also posted gains below the national average (+7.7%). Almost half the increase occurred in OntarioIn Ontario, motor vehicle sales surged 9.7% to 52,001 units in October, an increase of 4,598 vehicles compared with September. This figure represents 47% of the national increase registered in October. Sales had declined in September and August in Ontario. Despite the rebound in October, sales in Ontario remain relatively stable, following a string of increases that began at the start of the year and peaked in April. Previously, sales had gone through a period of major declines throughout the second half of 2003. Available on CANSIM: tables 079-0001 and 079-0002. Definitions, data sources and methods: survey number 2402. The October 2004 issue of New Motor Vehicle Sales (63-007-XIE, $14/$133) will soon be available. Data on new motor vehicle sales for November 2004 will be released on January 14, 2005. 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), Distributive Trades Division
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