Tuesday, June 22, 2004

Another gain in auto sales

Consumer demand for new autos remained strong in April as car dealers recorded their best month since last summer.

Drivers bought 137,719 new cars and trucks, up 2.6% from March, the fourth consecutive monthly gain. It was the highest level in the last eight months.

About two-thirds of the increase came from the sale of new passenger cars.

However, preliminary figures from the auto industry show a decline in May, largely the result of a drop in truck sales.

Trucks include minivans, sport-utility vehicles, light and heavy trucks, vans and buses. Indications are that rising gasoline prices may be biting into the sales of SUVs.

Dealers sold 70,556 new passenger cars in April, up 3.2%. North American-built vehicle sales benefited most, with a 3.9% increase. Overseas-built car sales, while still up, posted a smaller gain.

Trucks close gap

Truck sales reached 67,164, a 2.0% increase. Truck sales have been generally closing the gap with passenger car sales over the past 18 months.

Interest rates are still at historic lows, and auto makers continue to offer incentives, such as interest free loans, subsidized loan rates and cash rebates on some models.

Passenger car and truck sales both rose in the first four months of 2004, following a period of sharp declines in the second half of 2003.

Sales rose in every province in April. Quebec, Ontario and Manitoba all posted their fourth consecutive advance.

For more information, contact Elton Cryderman (613-951-0669), Distributive Trades Division.

© 2004, Statistics Canada.