Canadian Auto Sales Show Resilience in July 2025 Despite Trade Headwinds
In July 2025, Canadian light vehicle sales reached an estimated 172,000 units, up 6.9% from July 2024, marking the strongest July since 2019 despite trade uncertainty from U.S. tariffs. While the year-over-year gain was aided by a weak 2024 comparison, an extra selling day, and sales from pre-tariff inventory, the results still reflected notable resilience. The seasonally adjusted annual rate (SAAR) was 1.89 million, slightly below Q1 levels but steady with Q2 — which DAC’s Andrew King called an achievement given current economic challenges.
Zero-emission vehicle (ZEV) sales remained stagnant, with Tesla announcing a $20,000 price cut on its possibly German-sourced Model Y but offering no immediate deliveries. The situation underscores the industry’s need for clearer and more realistic government policies on future ZEV mandates and incentives.
U.S. Gas Prices Edge Higher for Second Week Amid Oil Market Shifts
National gas prices rose for the second consecutive week, reaching $3.14 per gallon, up 1.3 cents from a month ago but 32.8 cents lower than a year ago, according to U.S. EIA and GasBuddy data.
Tariffs, Tight Supply Drive Unusual Trends in Canada’s Auto Market
The AutoTrader Price Index provides a quarterly snapshot of Canada’s automotive market, analyzing nationwide new and used vehicle pricing, consumer demand, inventory trends, and popular models. Since March, both markets have been influenced by a “pull-forward” effect from anticipated tariffs, with buyers accelerating purchases ahead of potential price hikes. Used car prices have risen for four straight months — contrary to typical seasonal declines — reaching an average of $37,664 in June, up 3.6% year-over-year, while new car prices dropped 3.5% to $64,445. Battery Electric Vehicle (BEV) prices have also fallen, with new BEVs down 9.9% and used BEVs down 7.9%, but the end of Canada’s federal EV incentive program has led to steep declines in Zero Emission Vehicle (ZEV) sales. The market’s short-term outlook remains uncertain, hinging on potential trade agreements and the reinstatement of EV incentives.