Canadian vehicles sales sharply rebound

May 16, 2008

THE CANADIAN PRESS

OTTAWA – Sales of new motor vehicles closed the first quarter of 2008 with their strongest gain since 1998, despite a slight decline in March.

An exceptionally strong January powered a 9.1 per cent gain in unit sales in the first quarter compared with the fourth quarter of 2007 – the strongest growth rate since mid-1998.

Statistics Canada attributes the gains to lower prices, additional rebates and incentives, such as better financing, and a one percentage point reduction in the goods-and-services tax.

The quarterly increase was driven almost entirely by strong sales of new passenger cars, which were up 17.8 per cent, the largest increase since 1976.

Consumers bought 148,796 new vehicles in March, down 0.5 per cent from February.

Sales of new trucks – including minivans, sport-utility vehicles, light and heavy trucks, vans and buses – fell 0.6 per cent in March while passenger car sales slipped 0.3.

The agency says preliminary industry data for April suggests the number of new motor vehicles sold will remain relatively unchanged.

thestar.com