Auto sales remain lacklustre
Except for April 2020, new vehicle sales haven’t been this low in April since 1999
By Cohen Perratt, ATB Economics 29 June 2022 1 min read
New vehicle sales in Alberta remained weak in April with the number of new vehicles sold down by 2,931 units (-15.2%) compared to a year earlier. Except for in 2020 when activity plummeted due to the pandemic, new vehicle sales haven’t been this low in April since 1999.
On a year-to-date basis, the number of units sold was down by 14.5% compared to the same four months in 2021. The average price of new vehicles, however, appreciated 6.6% during the same timeframe.
This trend was evident on a national basis as well. Canadian new motor vehicle sales fell by 10.4% while the average price grew by 5.1% through the first four months of 2022.
The ongoing global disruption of supply chains is causing shortages of essential car manufacturing components such as semiconductors, which is straining inventory levels and pushing prices up for new cars.
More trouble might be ahead for auto sales as rising borrowing rates and inflationary pressures weigh more heavily on consumers.
Answer to the previous trivia question: In 1949, Newfoundland and Labrador was the last province to join Canada.
Today’s trivia question: Which new country did Nova Scotia, New Brunswick, and the Province of Canada form?