Consumer sentiment in the automotive sector remains stable despite potential U.S. tariff threats. Industry professionals express optimism about new vehicle sales, with a notable increase in transactions despite rising prices. Data shows a significant jump in sales from November 2022 to November 2024. Long-term industry veterans anticipate price reductions due to an aging vehicle fleet, while some, like a Nissan employee, remain unfazed by tariffs, highlighting that the U.S. doesn’t dominate Canadian car imports.
Consumer Sentiment Amid Potential Tariff Threats
Despite the looming possibility of a tariff war with the United States, many consumers and automotive industry professionals are maintaining a sense of calm. This sentiment was evident during a recent auto show visit, where some expressed optimism for an uptick in new vehicle sales. An employee from Nissan in Greater Montreal, who requested to remain anonymous, stated, “If Donald Trump imposes his tariffs, we will have no choice but to live with it. We will adapt.”
According to an analysis by financial comparator Hardbacon, new car prices have surged by 68% between 2019 and 2024. The pandemic has severely disrupted the supply chain, and as Stuart Bergman, Chief Economist at Export Development Canada, mentioned, these past challenges might offer insights into future trends. “The prospect of increased tariffs heightens uncertainty in the Canadian automotive sector, which exports 93% of its production to the American market,” he explained. The Nissan employee reflected on the current market climate, admitting, “It’s harder to sell right now,” noting a drop in customer interactions from his typical weekly average.
Positive Sales Trends Despite Price Increases
Interestingly, this Nissan employee, who identifies as pro-Trump, remains unfazed by the potential tariff threats. Nadine Gad, the head of advertising and media at Nissan Canada, shares this perspective, claiming that car sales “are doing very well.” Sales figures for new vehicles saw a remarkable jump in 2023, even amid rising prices. Data from November 2024, provided by Statistics Canada, indicates that over 160,000 new vehicles were sold, a significant increase from around 125,000 in November 2022.
Visitors like Pierre Grandmaison, who has a four-decade-long background in the automotive industry, are hopeful for a reduction in car prices. He noted that the aging fleet of vehicles on the roads could lead manufacturers to lower prices, driven by the excessively high costs that have negatively impacted sales. Grandmaison reminisced about 2019, when the average monthly payment for a new vehicle in Montreal was $792—a stark contrast to the current average of $1,310. Although he prefers used vehicles and tends to shop for three-year-old models, he too is untroubled by the potential for tariff increases, recognizing that the U.S. does not have a monopoly on car imports to Canada.