Canada’s new light vehicle market continued to soften in May, with sales declining in most provinces and every province now reporting year-to-date sales below 2025 levels. Nova Scotia and Newfoundland were the only provinces to post year-over-year gains in May, increasing 4.6% and 1.1%, respectively, though both remain negative for the year. Ontario and British Columbia experienced only modest declines, while the remaining provinces recorded low single-digit decreases. Quebec also slipped into negative territory year-to-date, marking the first time all ten provinces have reported annual sales declines simultaneously.

For fleet operators, the data points to a market that remains relatively stable but consistently weaker than last year. National new light vehicle sales totaled an estimated 184,000 units in May, down 1.7% year over year, while year-to-date sales reached 769,000 units, a decline of 3.7%. Although the decreases remain relatively modest, the broad-based nature of the slowdown suggests ongoing economic uncertainty is weighing on vehicle demand across the country. Fleet managers should continue monitoring regional trends as softer market conditions may create opportunities for improved vehicle availability and manufacturer incentives later in the year.