As normalcy remains an unattainable goal, July sales dropped 5.7% Due to inventory and chip shortages

According to DesRosiers Automotive Consultants (DSC), July’s new-vehicle sales were down nearly 6 percent compared to the previous year. This is due in part because of continuing shortages in semiconductors and inventories.

According to the firm, automakers sold only 155,657 cars last month. This is a decrease of 5.7%. The majority of companies now report quarterly, so monthly sales figures are only estimates.

The consultancy stated in a statement that “some dealer lots looked like barren wastelands and the industry continued its struggle to match supply/demand.”

Seasonally adjusted annual sales rates (SAARs) reached 1.71million for July, a significant increase from 1.65 million in June. The July SAAR was still well below the March figure of 1.92 million.

Andrew King, DesRosiers managing partner, said that despite the somewhat disappointing top-line, there was still hope with some manufacturers seeing an increase in sales starting 2020. These disparities in performance were the true story of the month and they will probably continue for the rest of the year, as the effects of the semiconductor shortages vary by model and manufacturer.

Toyota Canada was able to overcome inventory shortages and pandemic restrictions, and achieve a record-setting July.

This automaker sold 238,45 vehicles in July, an increase of 19.4% over the previous month and a 10% improvement over July 2019. Sales were not affected by the COVID-19 crises.

Canadian-made RAV4 sales reached record levels in July, with 6,702 units sold. This makes it the most-sold Toyota vehicle. The 2,070 Highlander sales also set a new record.

The company’s luxury Lexus division saw record-breaking sales of 2,608 units in its fifth consecutive month. This includes the Lexus UX (NX), RX CUVs, and the Lexus UX.

28% of Toyota Canada’s total July sales were made by electrified vehicles

Robert Karwel is the senior manager for automotive practice at J.D., and this tight inventory has led to many dealers having to close their doors. Power Canada says that the average vehicle incentive fell to $4,000 in May and June, but July figures aren’t available. The lowest level of incentives since J.D. Power began tracking incentives in Canada in 2012.

Karwel stated that electric cars are more appealing because there is less incentive from automakers. For example, the provincial incentive is worth $5,000 and can be combined with the federal rebate up to $5,0000. Quebecors may be eligible for up to $12,000 in rebates on electric vehicles if they combine federal and provincial programs.

Automotive News Canada’s Karwel said that while manufacturers may have stopped offering incentives, governments are not. There’s no better time than now to purchase an electric vehicle if you are looking to get the most bang for your buck.

Subaru set another record with 6,039 vehicles sold in the same month. According to the automaker, it was the third highest number of cars sold in any given month.

Subaru’s crossover compact Crosstrek saw another record month, with 2,839 units being sold. This is an increase of 94.6 percent over July 2020.

Subaru Canada CEO Yasushi Enami stated that “we’ve been very happy with our strong sale performance,” adding, “As the summer comes to an end, we will continue our momentum.”

Volvo saw sales rise by nine percent to 1,103 in July.

Hyundai sales fell by 5.6 percent to 12,638, but Genesis sales rose 356 percentage to 524 units.

The Kia sales were flat at 8,305, an increase of just five units.

Mazda sales dropped 10 percent to 6,340.

Publiated at Thu, Aug 5, 2021 17:04.13 +0000

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