Rolling forward: Vehicle sales advance in the first half
New vehicle sales were up by 9.4% over the first half of 2023
By Siddhartha Bhattacharya, ATB Economics 24 August 2023 1 min read
After a challenging 2022, vehicle sales are on the rise again. New Statistics Canada data indicates that the number of new motor vehicles sold in Alberta stood at 19,292 units in June 2023, up 6.8% from last June.
Over the first half of the year, unit sales increased 9.4% over the same time last year driven entirely by the sales of trucks* (+11.1%) as passenger car sales dialed back (-5.5%).
The dollar value of sales was even stronger at 16% year-to-date (YTD), in line with the national increase, partly reflecting higher average costs for vehicles.
This is a marked turnaround from 2022, when pandemic-ridden supply chain challenges plagued the auto sector and severely limited options for consumers. The number of new vehicles sold fell almost 8% in both Alberta and Canada last year. However, revenues managed to still rise by 3.2% in Alberta and 1.7% nationally due to higher prices.
While higher interest rates remain a headwind, it is an encouraging sign that some of the supply chain challenges from the pandemic have started to ameliorate and that sales have increased following months of pent-up demand.
*Trucks include minivans, sport-utility vehicles, light and heavy trucks, vans and buses.
Answer to the previous trivia question: “Freakonomics: A Rogue Economist Explores the Hidden Side of Everything" by Steven D. Levitt and Stephen J. Dubner came out in 2005.
Today’s trivia question: When was the first Daytona 500 car race held?