Canada’s new‑vehicle market extended its slowdown in May, marking the eighth consecutive month of year‑over‑year declines and reinforcing signs of a prolonged softening in consumer demand, according to DesRosiers Automotive Consultants.
The group estimated May sales at 184,000 units, down 1.7 per cent from 187,000 in May 2025. The result comes in what is traditionally the strongest sales month of the year, highlighting the market’s inability to regain pre‑pandemic momentum.
“There had been hopes that the market may crack the 190,000 barrier in what is traditionally the biggest sales month of the year but, alas, that elusive mark (last reached in May 2019) remains out of sight,” said Andrew King, managing partner at DesRosiers.
The continued decline comes against a backdrop of broader economic weakness. Statistics Canada recently confirmed the country has entered what it described as a technical recession, though DesRosiers noted the slowdown has been felt by consumers for some time.
On a seasonally adjusted basis, the market weakened further. The SAAR for May came in at 1.78 million units, the lowest level recorded so far in 2026 and part of a steady downward trend since the start of the year.
While overall volumes declined, performance across segments was uneven. Both luxury and mainstream brands saw mixed results, with some models posting double‑digit percentage declines alongside more modest losses elsewhere in the market.
The zero‑emission vehicle segment also showed signs of softening. Sales of several high‑volume ZEV models declined from April levels, adding to recent volatility in electrified vehicle demand. DesRosiers noted that the arrival of 2,910 Chinese‑built EVs into Canada in May under a new trade agreement is expected to support future sales, though most of those units are likely to be reflected in June data.
The May results reinforce a pattern seen throughout 2026, with the market continuing to “stagger along,” as DesRosiers described it, rather than showing a clear recovery path. With eight consecutive months of declines now recorded, the focus will shift to whether upcoming months can stabilize volumes or if the downturn deepens further, the consultancy said.
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