The Canadian automotive market closed the final month of 2025 with a notable decline, though the full year remained in positive territory according to industry analysts.
December Sales Show Seasonal Slowdown
New data from DesRosiers Automotive Consultants reveals that vehicle sales in Canada dropped by 7.3 per cent in December 2025 compared to the same month a year earlier. This downturn reflects a typical year-end slowdown as dealerships clear inventory and consumer spending often shifts to the holiday season. The December figures highlight a cooling period for automakers and dealers after a generally strong year.
Full-Year Picture Remains Positive
Despite the weak finish, the overall annual performance for the Canadian auto sector was positive. Total sales for the 2025 calendar year saw a gain of 2 per cent compared to 2024. This annual increase indicates underlying resilience in the market, driven by improved inventory levels earlier in the year and sustained consumer demand for new vehicles, even amidst broader economic uncertainties.
The data, compiled and reported by DesRosiers, is a key benchmark for the health of the country's automotive retail industry. The consultancy's figures are widely trusted by manufacturers, dealers, and investors for tracking market trends.
Market Context and Future Outlook
The mixed results—a strong year capped by a soft month—present a nuanced view of the Canadian consumer. The December dip may be attributed to a combination of factors, including economic headwinds, interest rate environments affecting financing, and the natural sales cycle. However, the 2 per cent annual gain suggests that the market has stabilized and is growing modestly following the supply chain disruptions of recent years.
Analysts will be watching closely to see if the December slowdown carries into the first quarter of 2026 or if it was merely a seasonal blip. The performance of key segments, such as trucks, SUVs, and the growing electric vehicle market, will be critical in determining the trajectory for the new year.
