Canada Autos Report Q4 2010

Date: September 22, 2010
Pages: 34
US$ 1,295.00
Report type: Strategic Report
Delivery: E-mail Delivery (PDF), Download
ID: CB95950A865EN

Download PDF Leaflet

Includes 3 FREE quarterly updates

A return to stronger vehicle sales in June has kept Canada's auto industry on track for BMI's projection of 5.8% growth in 2010. Although sales for June were up 12% year-on-year (y-o-y), at 154,565 units, a much improved performance from 0.6% growth in May, this is still lower than the 25.9% peak of February. Moreover, year-to-date sales growth has been sliding from 15% for Q110, to 11% for the first four months and now 9% for H110. Based on our view for heightened economic uncertainty in the more developed states during H210, we are confident in retaining our 5.8% forecast.

One notable trend in June's sales is a shift back towards the light truck market, which accounted for 53.2% of total sales, compared with 48% in June 2009. Within that segment, which also includes SUVs and crossovers, pick-up trucks accounted for 15% of the market in the five months to May, which is the highest market share for pick-ups in 12 years. However, BMI cautions that some of the most generous cash incentives have been offered in the truck market, which could be inflating natural growth. BMI believes that sales growth can remain positive, with growth to moderate to an annual average of 1% for the remainder of the five-year forecast period.

Although we believe Canada has proven more stable than the US in terms of returning to natural and sustainable vehicle sales growth, the market ranks much lower in BMI's Business Environment Ratings for the automotive industry in the Americas region. The country ranks eighth with a score of 42.6 out of a possible 100. Despite the lower ranking, the country scores highly for its regulatory environment, reflecting free trade agreements (FTAs) such as the North American Free Trade Agreement (NAFTA). The Detroit Three have benefited from a return to favour for trucks. Ford reported its best monthly sales in a decade in June to lead the market, while GM reported growth of 16.4% and Chrysler more than doubled sales compared with June 2009. However, this must be placed in context as GM and Chrysler were going through Chapter 11 restructuring at this point in 2009 with most North American plants closed and inventories plundered. On the other hand, the more passenger car-oriented Japanese brands have suffered from the shift in preference, with Toyota's sales falling 15% in June and Honda's sales down 12.5%. Both brands have also seen sales for H110 fall, by 4.7% for Toyota and 5.7% Honda, which resulted in a drop in market share for the two to 10.9% and 7.4% respectively from 12.5% and 8.6% in H109. Both slipped by a further percentage point in the seven months to July.
Executive Summary
SWOT Analysis
Canada Auto Industry SWOT
Economic SWOT
Market Overview
Industry Developments
Industry Business Environment Overview
Business Environment Ratings
    Table: Latin America Auto Business Environment Ratings
Regional Leaders
The Underperformers
Reining Developed States
Industry Forecast Scenario
Production And Sales
    Table: Canada Autos Sector: Historical Data And Forecasts
Economic Contribution
    Table: Canada Auto Sector: Historical Data And Forecasts
Macroeconomic Scenario
    Table: Canada - Economic Activity
Competitive Landscape
    Table: Canada: Top
New Vehicle Sales, 2009 (CBUs)
    Table: Canada - Top
New Vehicle Sales, Jan-Jul (CBUs)
Company Profiles
General Motors
Ford Motor
BMI Methodology
How We Generate Our Industry Forecasts
Skip to top

Canada Autos Report Q4 2015 US$ 1,295.00 Sep, 2015 · 63 pages
Canada Autos Report Q1 2016 US$ 1,295.00 Dec, 2015 · 39 pages
Canada Autos Report Q2 2016 US$ 1,295.00 Mar, 2016 · 33 pages
Canada Autos Report Q3 2016 US$ 1,295.00 Jun, 2016 · 34 pages

Ask Your Question

Canada Autos Report Q4 2010
Company name*:
Contact person*:
Request invoice
Your enquiry:
Please click on a Check Box below to confirm you are not a robot: