Current Market Trends
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After the 2008-2010 slow down, the automotive sector rebounded and continued to be strong. Since 2013, light vehicles unit sales in Canada have increased annually in average over 4 % to 2,038,798 units in 2017, but in 2018 decreased by 2.6%. Despite increased competition in the passenger vehicle sector, the United States continues to maintain its dominance within the light and heavy-duty truck market, retaining 42 percent of the Canadian market share.
Canada’s continued recovery from the late 2000’s recession presents the opportunity for the growth of the automotive sector. After suffering a decline in 2009, the motor vehicle industry part of Canada’s
GDP (NAICS Code 336 and 415) decreased by 1.5% from 2017 to 2018 (Statcan Table: 36-10-0434-04 annualized data). As both the average age of vehicles and demand for vehicles increase, Canada expects 24.2 million registered light vehicles in 2022. Historically, the percentage share of light trucks increased steadily compared to passenger cars. In recent years total unit sales of passenger cars and light trucks the light trucks segment is dominant and reached approximately 68% in 2018.
Statistics Canada reports that there are more than 34.3 million registered vehicles (cars, trucks, motorcycles, buses, etc.) in Canada. Considering the continuing demand for the maintenance they require, there are very good prospects for U.S. companies in the automotive aftermarket sector. This industry continues to be robust, containing an estimated CAD $21.34 billion in retail value
in 2016, at a steady growth rate of 1-3% annually based on the increasing volume of vehicles on the road. The largest automotive aftermarkets are those of Ontario (36 %), Quebec (24 %), Alberta and B.C. (both 13 %).
There are several trends that will positively affect the market share of the aftermarket within the Canadian auto sector. Registrations for light vehicles in Canada have increased steadily since 2006 and is expected to grow further. The increase in sales of light trucks is even promising to the aftermarket, since light trucks have longer lifespans than passenger cars, but necessitate higher maintenance costs.
market trends