In the third quarter, the Canadian light vehicle market experienced several notable shifts at the segment level. The subcompact car segment, which had shown significant growth in the first half of the year, saw sales decline by 33.7% in Q3. This pullback caused the segment to fall out of the top three year-to-date performers from a percentage growth perspective. In contrast, the intermediate car segment showed a remarkable turnaround, with sales rising 43.3% during the quarter, driven by strong performances from the Toyota Prius and Camry after a weak start to the year.

The top three performing segments year-to-date were small pickups, small vans, and compact luxury cars, with growth rates of 38.9%, 38.6%, and 31.8% respectively. Growth in the small pickup segment was widespread across most models, while the small van segment saw strong gains led by the Chrysler Pacifica. On the other hand, the weakest performances came from the luxury car segment, which dropped 46.9%, and the sports car segment, which fell 18.8%. Andrew King, Managing Partner at DAC, attributed these declines to ongoing trade conflicts and regulatory changes that have disrupted the market. He noted that the luxury segment’s decline was largely driven by a collapse in Tesla Model 3 sales, which significantly distorted overall performance in that category.