Canadian New Vehicle Sales Dip 2.9% Year-Over-Year in January, but Annualized Rate Exceeds 2 Million

Despite having an extra sales day in January, Canadian new vehicle sales declined by 2.9% year-over-year to 114,000 units, primarily due to a high base effect from the same period last year—January 2025 saw a buying surge driven by anticipated subsidy rollbacks and tariff changes, pushing sales to 118,000 units. However, the seasonally adjusted annualized sales rate (SAAR) reached 2.08 million units, surpassing all months in the second half of 2025 and rising 9% from December. Among the 10 brands still reporting monthly figures, Honda, Kia, Subaru, and Lexus posted declines, while Acura and Mazda recorded gains. Industry analysts noted that January’s performance exceeded expectations, considering economic uncertainty and severe winter weather. Multiple institutions forecast full-year 2026 sales to range between 1.90 million and 1.97 million units, approaching the 2-million-unit target.