New vehicle sales continue to face headwinds
The volume of sales in November was down compared the same month in previous years
By Siddhartha Bhattacharya, ATB Economics 20 January 2023 1 min read
New vehicle sales in Alberta have languished for the sixth straight month compared to 2021 levels.
The number of new motor vehicles sold in Alberta stood at 13,467 in November, down 273 units (-2.0%) from November 2021.
While truck sales ticked down slightly in the month, passenger car sales in the province fell to their lowest level since the pandemic-related nadir of April 2020.
Over the first eleven months of the year, 6.9% and 6.8% fewer new motor vehicles were sold in Alberta and Canada, respectively, relative to the same period in 2021.
The average price of new vehicles, however, remained on the rise. In Alberta, average car prices rose 10% year-to-date and managed to push revenues up by $242 million (+2.6%) within the same timeframe.
It was a similar story nationally where the appreciation of prices cushioned the decline in revenues experienced due to lower volumes sold.
Between the chip shortage that continues to hamstring the auto sector and the negative impact of inflation and higher borrowing costs on consumers, it will be some time before vehicle sales return to levels seen before the pandemic.
Answer to the previous trivia question: Recorded in 1994, the lowest annual inflation rate in Canada between 1970 and 2022 was 0.1%.
Today’s trivia question: The 2024 Chevy Corvette E-Ray is the quickest production model ever made. How long does it take to go from zero to 60 miles per hour?