The number of new vehicles sold in 2021 rose 6.6% in Canada, despite a global shortage of semiconductors that slowed auto production and caused several models to run out of stock, according to data from the firm. DesRosiers Automotive Consultants, unveiled Tuesday by Desjardins.
Nationwide, 1,638,398 new vehicles were sold in 2021, compared to 1,537,388 a year earlier. Four provinces even recorded an increase of 10% or more, including Quebec (+10%), where 400,844 new vehicles were sold in 2021.
The province with the largest increase was Prince Edward Island (+12.8%), followed by Nova Scotia (+12.2%) and British Columbia (+10, 8%). Ontario is one of the provinces where the increase was the weakest (+3.2%).
Rush for used vehicles
The inventory for used vehicles was also insufficient to meet demand, despite a slight increase in sales in 2021. In Quebec, 1,272,811 transactions concerning used vehicles were recorded in 2021, according to the Société de Quebec automobile insurance (SAAQ).
This is an increase of 4.1% compared to 2020. The level of 2021 is however 2.5% lower than that of 2019, just before the pandemic. According to the SAAQ, approximately 45% of used vehicle sales are made without an intermediary and 55% are concluded through a merchant in Quebec.
Price spike
The limited supply of vehicles “resulted in a rapid rise in prices,” analyzed Hélène Bégin, senior economist at Desjardins.
Thus, Canadians spent, on average, approximately 15% more for the purchase of a new vehicle in 2021, or $42,500 compared to $36,500 in 2020. The average price for a used vehicle increased by 7 .4% in Canada to $25,727 in 2021. In Quebec, the average is $21,200.
Ms. Bégin believes that the supply problems of parts that come from Russia and Ukraine “will further slow down the manufacturing of motor vehicles in the coming months”.
According to her, vehicle sales will remain limited in 2022 and prices will continue to climb, “at least as long as the imbalance between supply and demand remains so significant”.
“There is no indication that the overheating will soon be reabsorbed, but it should ease from 2023”, however indicated the economist.