Canadian car sales dropped a moderate 3.3% in February in a third straight monthly decline, as good demand for Detroit brands helped offset a setback for the Japanese.
Reuters reported that Chrysler Canada was the top seller last month, pipping Ford of Canada by a few hundred units, although Ford posted a higher overall sales increase at 5%, compared with Chrysler’s 2%.
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Carlos Gomes, an auto sector analyst at Scotiabank, told the news agency severe winter weather in part may have been responsible for the overall weakness.
“It’s not terribly out of line with what we are forecasting for the year as a whole,” he said.
Excluding weak sales of Japanese and Korean vehicles, sales have been up nearly 2% this year, Gomes said.
Industry sales totaled 103,226 vehicles in February, down from 106,712 a year ago, according to analyst firm DesRosiers Automotive. The drop comes after January sales fell modestly following a sturdy 5.7% sales rise in 2012.
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By GlobalData“It still remains relatively robust given the slowing economy and drop in consumer confidence that was seen during the month,” independent industry analyst Dennis DesRosier said in a research note.
DesRosier said the spring selling season starting in March will provide a better gauge of the industry’s direction for this year.
Chrysler, whose Ram pickup truck is the second best-selling vehicle in Canada, sold 16,832 vehicles in February, up from 16,536 for the same period a year before. Car sales were up 16% from February 2012, while trucks were down 0.6%.
Ford’s 5% rise in February sales marked its best performance for that month in seven years.
It sold 16,301 vehicles in February, up from 15,461 for the same period a year ago. Car sales climbed 13%, while truck sales were up a little over 3%.
General Motors sales fell 1.9% compared to a year earlier, but were up 2.2% when adjusted for selling days. It sold 13,987 vehicles compared with 14,258 in February of last year.
GM said car sales rose 8.8%, but truck sales fell 6.5%.
Toyota’s Canadian sales fell nearly 14%, while Honda recorded a 13% decrease in Canada, excluding their respective luxury brands, Lexus and Acura.
Nissan Motor sales fell 15% compared with February 2012, excluding the Infiniti line, which was up 27%.
Korean brands Hyundai and Kia were also down nearly 6% and 10%, respectively, Reuters said.
