Canadian auto sales rise for fourth straight month in September

RICHMOND HILL · Canadian auto sales rose in September for the fourth consecutive month, according to DesRosiers Automotive Consultants Inc. The firm estimates 168,000 vehicles were sold, an increase of 3.4 percent from September 2025. Andrew King, managing partner at DesRosiers, said the market has shown stability in recent months despite conflict in the Middle East and a tariff dispute with the United States. The seasonally adjusted annual sales rate held steady at 1.91 million units, staying in its recent range. Despite the monthly gains, sales for the year to date remain 0.7 percent lower than 2025 levels. DesRosiers said sales could be weaker in the fourth quarter compared with stronger sales seen in 2025. The firm noted that most automakers are still down for the year, though there have been "hopeful signs" including gains at Volkswagen, Toyota and Stellantis.

"The market has shown stability in recent months despite conflict in the Middle East and a tariff dispute with the United States," said King. The research firm said the recent run looks more like steady demand than a one-off spike. DesRosiers is now watching for factors that could change the sales pace in the coming months. The firm is monitoring whether federal and provincial electric vehicle incentives that step down at year-end will pull some purchases forward into the late-year months. It is also watching whether new Chinese-brand launches add fresh competition and supply to the market. Auto sales have slowed overall this year as gas prices remain raised and Canadian households pull back on spending amid geopolitical uncertainties. In the luxury segment, Lexus, Mercedes and BMW are separated by only a few thousand units as the industry heads into the final quarter. DesRosiers flagged questions around fading EV incentives and new Chinese-brand launches as key factors for the market's next phase.

With files from The Canadian Press, BNN Bloomberg and The Globe and Mail