Canadian Auto Sales Rise in May, But Trade Tensions Loom
In May 2025, Canadian new light vehicle sales rose 7.9% year-over-year, with 187,000 units sold. Year-to-date sales are up 5.6%.
Quebec returned to positive territory with a 6.5% monthly increase, nudging year-to-date growth to 0.3%, despite earlier declines tied to a drop in ZEV sales.
However, Quebec, along with British Columbia (+4.2%) and Ontario (+6.6%), remained among the weaker performers as early effects of the US-Canada trade war emerged.
In contrast, Atlantic provinces led growth: Nova Scotia (+24.3%), PEI (+18.8%), New Brunswick and Newfoundland (both +14.3%). Saskatchewan, Manitoba, and Alberta (+8.3%) also showed strong gains.
Analysts warn that trade tensions may continue to weigh on the market unless a deal is reached.
Federal Rollback of EPA Waivers Curtails California’s Emissions Authority and Fleet Electrification Mandates
On June 12, President Donald Trump signed three Congressional Review Act resolutions that revoke EPA waivers previously granted to California, effectively blocking the enforcement of the state’s Advanced Clean Cars II (ACC II), Advanced Clean Trucks (ACT), and Omnibus Low NOx regulations.
Fleet Order-to-Delivery Times Improve in 2025, But Challenges Remain
In 2025, fleet operators are seeing notable relief from the severe order-to-delivery (OTD) delays experienced during the pandemic, with average lead times dropping across all major vehicle categories.