March Sees 9.2% Increase in Car Sales, Yet Signs of Weakness on the Rise: Desrosiers

According to the latest report by DesRosiers Automotive Consultants Inc., March witnessed a commendable surge in auto sales, marking a notable 9.2 percent increase compared to the previous year. This uptick, however, signals a deceleration from the unprecedented gain recorded in February. The data reveals that approximately 159,000 units were sold last month, contributing to a robust first-quarter performance, with overall sales reaching 401,000 vehicles—a significant uptick of 15.3 percent compared to the same period last year.

Despite these positive figures, it’s essential to note that March’s sales figures still lag significantly behind pre-pandemic levels, falling short of the more than 180,000 vehicles sold in March before the onset of the pandemic. Andrew King, the managing partner at DesRosiers, attributes this growth to pent-up demand resulting from supply chain disruptions. As vehicle availability gradually normalized, consumers capitalized on this opportunity, driving sales activity upward.

However, amidst the overall positive trend, King also highlights emerging warning signs within the automotive market. Notably, there’s a discernible slowdown observed in the luxury vehicle segment, contrasting with the relatively stable performance of the mainstream vehicle market. This divergence suggests a growing disparity within the automotive industry, reflecting varying consumer preferences and economic dynamics.

In summary, while March witnessed a commendable increase in auto sales, marking a positive trajectory for the industry, caution is warranted as signs of deceleration and market divergence become more apparent. The ongoing impacts of supply chain disruptions and shifting consumer behavior continue to shape the automotive landscape, necessitating a nuanced understanding of market trends for industry stakeholders.