Canada new car sales February 2012

Automotive Dealer - Canada new car sales February 2012 ; Some of the world’s largest automakers saw Canadian sales grow by double digits last month as more customers flocked to showrooms shopping for fuel-efficient vehicles amid a spike in gasoline prices.

Overall vehicle sales were up 11.2 per cent last month to 106,712 from 96,006, according to a report from DesRosiers Automotive Consultants.

Car sales shot up 17 per cent to 46,285 last month from 39,514 in February 2011.

Meanwhile, as the average age of vehicles on Canadian roads sets new records, that leads to an increased need to replace aging vehicles, while interest rates remain at ultra low levels making auto loans cheap.

As well, Japanese automakers have largely recovered from a disruption due to last year’s earthquake and tsunami.

Positive results from automakers in the opening two months of the year put the industry on track for its third straight year of improving sales. Sales bottomed in 2009 during the financial crisis, but rose the next two years.

“Although sales were very strong in February, they still were not back to levels achieved in 2008 pre-financial crisis,” said analyst Dennis DesRosiers. “We still have a very long way to go.”

The story so far this year has been passenger car sales, which are up 22 per cent for the year, he said.

“Since Detroit is stronger on truck than on car, this is hurting Detroit’s collective market share which is down about three points.”

One new trend is the emergence of Chrysler as the country’s top selling automaker for the past two months, beating out reigning champ Ford, which saw sales slip.

Consumers have reacted favourably to Chrysler’s new lineup of fuel-efficient products since Fiat took over leadership of the company after it restructured in 2009.

Chrysler said Thursday that February sales increased nine per cent compared with a year ago and hit their best level for the month since 2002.

Chrysler Canada, which has assembly plants in Windsor and Brampton, Ont., northwest of Toronto, as well as parts operations, said it sold 16,536 cars and trucks in February, up from 15,238 in the same month last year.

Meanwhile, GM said it sold 14,258 vehicles in February, up 16 per cent over February 2011, as sales of fuel-efficient crossovers increased significantly compared with a year ago.

Ford Canada sales, meanwhile, fell 3.8 per cent to 15,454 from 16,066, according to DesRosiers, as stronger sales at other automakers ate into Canada’s years-long top seller.

The big three Detroit nameplates also lost market share to foreign automakers as consumer growth turned more toward smaller cars than the pickup trucks that have been largely responsible for U.S. automakers success over the past few years.

Truck sales were also higher last month, by seven per cent to 60,427 units from 56,492 during the same month of 2011, but their growth was outpaced by cars, a rare phenomenon over the past few years that coincides with rising gasoline prices.

“One Detroit company may do better than others but collectively if pickup trucks don’t sell as well this year, the three together will lose share,” DesRosiers said.

Sales also improved for Japanese automakers for a second consecutive month after spending the better part of a year trying to smooth out supply disruptions caused by the Japanese tsunami last March.

Toyota Canada said sales rose 31 per cent with 12,384 Toyota, Lexus and Scion vehicles sold in February 2012.

Car sales were up 52.3 per cent to 6,889 units and truck sales saw their best ever February, up 10.9 per cent to 5,495. Meanwhile, hybrid sales jumped 169 per cent during the month.

At Honda Canada, sales rose 14 per cent to 8,883 units, led by a 111 per cent sales increase of the Honda Fit, as well as strong sales of its Ridgeline and Pilot.

Sales of all foreign nameplates grew 15.5 per cent to 60,603 from 52,482 a year ago, DesRosiers said.

South Korea’s Hyundai, which is quickly gaining market share in Canada, grew 6.5 per cent to 9,266 from 8,700.

Also among the fastest gainers according to DesRosiers were Volkswagen, with sales up 9.3 per cent to 3,539 from 3,237, and Suzuki, which saw sales increase 32.1 per cent to 457. Mercedes Benz sales were up 17.4 per cent to 2,319 vehicles and Kia sales rose 20 per cent to 4,644 from 3,870.

In the U.S., many automakers reported strong sales for February as Americans snapped up smaller cars to offset high gas prices.

Chrysler’s February sales rose 40 per cent from a year earlier as it sold nearly 134,000 new cars and trucks. All of its brands showed at least double-digit increases. Chrysler was helped by an easy comparison with last February, when sales were relatively low because many of its revamped models were just arriving in showrooms.

Ford sales rose 14 per cent, mostly on demand for the Focus compact car. Focus sales more than doubled to 23,350, making it the best February for the Focus in 12 years.

At GM, sales of the Chevrolet Cruze compact rose 10 per cent to top 20,000 for the month, while the new Chevy Sonic subcompact saw its best sales month ever at almost 8,000.

The strength of those sales helped General Motors, which was expected to see sales drop, report a one per cent increase.

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