New Car Dealers in Canada - Market Size, Industry Analysis, Trends and Forecasts (2024-2029)

New wheels: Impending interest rate hikes will likely mitigate strong revenue growth

Revenue for the Canadian New Car Dealers industry in Canada has declined in recent years. While demand for automobiles had been driven by healthy economic conditions, such as rising consumer confidence and low unemployment, the COVID-19 pandemic caused the reversal of many of these trends. Due to the government's Economic Response Plan regarding the pandemic, disposable income in Canada rose in 2020 following various programs and support payments made to individuals and families, protecting operators from experiencing a more profound revenue decline. Rising disposable income encourages consumers to make big-ticket discretionary purchases, such as new vehicles, although elevated interest rates have tempered this trend. With these countervailing trends, the analyst expects industry revenue to have fallen at a CAGR of 1.6% to $152.0 billion over the five years to 2023, including a 3.2% boost in 2023 alone as consumer conditions improve.

The New Car Dealers industry in Canada sells new and used passenger vehicles. Vehicles include passenger cars, light-duty trucks, sport utility vehicles (SUVs) and passenger vans. New car dealers also sell parts and provide repair services.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.