Tariffs’ Impact Yet to Be Felt as New Vehicle Sales Rise 4.3 Percent in First Half
Although vehicle imports into Canada have fallen to their lowest level in over two years, and demand for EVs has slowed dramatically, new vehicle sales in the country rose by 4.3 percent in the first half of 2025 compared with the same period in 2024, according to figures compiled by Automotive News Research & Data Center.
Excluding Volkswagen, Maserati and JLR (which have yet to report their numbers), and including an estimation of Ford’s sales (which reports annual sales only), 958,214 new vehicles were sold across Canada from January through June.
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In the second quarter alone, the increase amounted to 6.4 percent.
With 157,671 units sold in the first six months, General Motors has the largest share of the Canadian market at 15.8 percent. Toyota, meanwhile, has sold 124,181 vehicles so far this year.
Stellantis' decline continues: its multiple brands (Dodge, Jeep, Chrysler, Ram, Fiat, Alfa Romeo) collectively found 58,908 takers in the top half of 2025, representing a 14-percent drop versus the previous year.
$48,900 on Average
J.D. Power Canada reports that the average transaction price of a new vehicle has been rising steadily month after month—and by 25 percent since 2022. It now stands at $48,900. However, as the company notes, automakers have spent more on discounts and incentives to attract consumers.
The lowered interest rates in many cases have been beneficial, too. In fact, rates starting with a zero are no longer rare these days. The average monthly payment for customers choosing to finance their new vehicle has dropped from $880 to $870 in a year (but the average monthly payment for lease customers has climbed from $788 to $790).
What’s more, it’s pretty clear that many Canadians brought their purchases forward knowing that the new tariffs and countertariffs will inevitably have an impact on vehicle prices as manufacturers will not be able to absorb all of the cost. With this in mind, these tariffs should be felt more sharply in the second half of 2025.