New cars are seen at the Toyota plant in Cambridge, Ont., March 31, 2014.Mark Blinch/Reuters
Vehicle sales motored ahead again in February, with the Canadian market growing for the 23rd consecutive month and U.S. sales rising 5 per cent.
Canadians bought 109,248 new vehicles last month, compared with 105,693 a year earlier, giving the industry its best February performance since 2008.
The first two months of the year tend to be when auto makers post their lowest sales volume, so it's too early to project full-year results from those numbers.
But the increases represent a stronger than expected start to the year, with industry analysts looking for a decline in auto sales after a record 2014 that was capped by the best December to date in the Canadian market.
The first two months of 2014 were the weakest of the year, so the comparisons don't reveal much, said industry analyst Dennis DesRosiers, president of DesRosiers Automotive Consultants Inc.
The critical period for determining whether the market will top the record of 1.851 million vehicles hit last year will be the final four months of the year, he said. "They were the strongest last four months of the year we've ever had."
It is encouraging, however, that Canadians ignored bad weather, the decline in the value of the Canadian dollar and the economic uncertainty caused by falling oil prices to send auto sales higher, Mr. DesRosiers said.
FCA Canada Inc. – formerly Chrysler Canada – led the sales rankings with a 1-per-cent increase that kept it ahead of Ford Motor Co. of Canada Ltd., whose sales slipped 7 per cent.
Among the major auto makers, Volkswagen Canada Inc. posted the strongest results with a 26-per-cent increase, while Toyota Canada Inc. sales rose 19 per cent.
Hyundai Auto Canada edged ahead of Honda Canada Inc. for fifth spot.
Light trucks grabbed 63.6 per cent of the market, up from 61.4 per cent in February, 2014.
The impact of lower gas prices appeared to be mixed, however. General Motors of Canada Ltd. reported that sales of its large sport utility vehicles soared 468 per cent. Toyota said sales of its hybrid vehicles doubled.
Sales grew in the U.S. market, but at a slower pace than in January.
The seasonally adjusted annual rate of sales hit 16.2 million, which was the lowest level since April, 2014, said Bank of Nova Scotia economist Carlos Gomes.
But that is likely temporary, Mr. Gomes said.
"The U.S. labour market – the key driver of vehicle sales – continues to strengthen and is now advancing 2.3 per cent year-over-year, the fastest pace since mid-2000."
Sales started out well last month, but tailed off, industry officials said.
"I don't think there's any question the industry slowed a little bit in the last week," Mark LaNeve, vice-president of U.S. marketing sales and service said on a conference call with analysts and reporters.
Mr. LaNeve said he could not put a finger on the reason, but the end-of-month dip might have been caused by weather or the rise in fuel prices in the United States last month from January, which caused consumer confidence to decline.