New-vehicle sales have nowhere to go but up in 2021, however the pandemic’s second wave means it may not be until at least the spring before consumers, sitting on piles of savings, return to the dealerships in droves.
“There was early hope when the vaccine was announced and started rolling out,” said Brian Kingston, president of the Canadian Vehicle Manufacturers’ Association (CVMA), which represents the interests of the Detroit Three in Canada.
“But the fact is, we’re in a significant second wave. We’re in for a long winter.”
Automakers sold 1.55 million new vehicles last year — the fewest since 2009, which was ravaged by the global financial crisis. Fourth quarter sales, meanwhile, were down almost six per cent compared with the same period in 2019.
Last year’s 20-per-cent slide in annual sales was the second-largest percentage decline on record, falling between the 22.7-per-cent decline of 1982 and the 17.3-per-cent drop of 1954, according to DesRosiers Automotive Consultants.
But a vaccine is now on the horizon, household debt is down and Canadians are saving like never before. Those factors bode well for sales in 2021 — maybe not immediately, but eventually.
SURGING SAVINGS