Vehicle sales hit speed bump in July
Global chip shortage helps explain lower sales
By Rob Roach, ATB Economics 16 September 2021 1 min read
Driven in part by supply chain disruptions, the number of new vehicles sold in Alberta was down by 11.7% (2,293) in July compared to the pre-pandemic level in July 2019.
The value of new vehicles sold in the province was also down, going from $924.3 million in July 2019 to $872.5 million in July 2021 for a drop of 5.6%.
Exactly how much of the drop is due to the global shortage of semiconductors that has impeded the production of new vehicles versus other factors is not clear, but anecdotal evidence suggests that a lack of inventory has led some buyers to press pause until more options are available.
Whatever the reasons, when we adjust for inflation, the value of sales over the first seven months of the year was 6.8% ($438.7 million) lower than over the same period in 2019. On the bright side, year-to-date sales were 20.7% ($1.0 billion) higher than in 2020.
Nationally, the number of vehicles sold in July 2021 was 12.6% (22,401) lower than the same month in 2019 and the dollar value was down by 3.6% ($275.7 million).
Answer to the previous trivia question: Charles Tupper holds the record for the shortest amount of time in the position, serving just 68 days in 1896.
Today’s trivia question (the sixth of a special non-partisan federal election series): Which Prime Minister holds the record for the longest amount of time in the position?