Automotive sales across Canada declined 7.3% year-over-year in December, according to data from DesRosiers Automotive Consultants.
The firm says that 126,000 vehicles were sold last month, down 7.3% compared with December 2024. The consultancy called the December sales “mediocre.”
The drop in sales of cars, trucks and SUVs is yet another sign that the Canadian economy is slowing. It also comes as prices for many vehicles move higher due to U.S. import tariffs.
DesRosiers says December 2024 was a tough comparison because there was an end-of-year rush as Quebecers raced to buy electric vehicles before a government incentive expired.
On an annual basis, DesRosiers said that auto sales were up 2% in 2025 compared to 2024, with a total of 1.9 million vehicles sold last year despite U.S. tariffs.
DesRosiers added that vehicle sales look flat compared with a 2017 peak because Canada’s population has grown by 4.9 million people but that hasn’t been reflected in increased sales.