Retail sales in Canada’s automotive sector showed little movement during the first quarter of 2026, a result industry analysts described as encouraging given the broader economic backdrop.
According to data analyzed by automotive marketing and analytics firm DAC, retail sales remained relatively stable despite Canada entering a technical recession, unresolved trade tensions and weakness across several areas of the automotive market.
Gasoline stations led the sector’s growth, with retail sales increasing 2.1 per cent during the first quarter compared with the same period a year earlier. In March alone, gasoline station sales were up 16.0 per cent year over year. DAC said the increase would have been larger had it not been for the elimination of the federal carbon tax on April 1, 2025.
Used vehicle dealers experienced the weakest performance among automotive retail categories, with sales declining 1.1 per cent from the first quarter of 2025. Despite the decrease, sales remained near historically high levels.
New vehicle dealers posted a modest gain of 0.2 per cent during the quarter, while automotive parts, accessories and tire stores recorded a 0.6 per cent increase.
“Retail sales in the automotive market have remained fairly stable even as Canada at large officially entered a recession,” said Andrew King, Managing Partner at DAC, in a statement. “These days, stability is a welcome enough outcome given the broader challenges.”
The results suggest that while consumers may be exercising greater caution amid economic uncertainty, spending related to vehicles and transportation continues to show resilience compared with other sectors of the economy.
