In the third quarter, Canadian buyers increasingly turned to small, affordable utility vehicles, with subcompact SUV sales rising by 27.8% and compact SUVs by 21.8%, as larger pickups and luxury SUVs saw significant declines. Overall new vehicle sales increased by 3.5% to 472,808 units, but inventory for subcompact and compact SUVs is in high demand, often selling within 22 days of arrival, compared to 74 days for full-size pickups. As vehicle prices continue to rise due to inflation, consumers are opting for more budget-friendly options, impacting the market dynamics. General Motors has notably benefited from this trend, with a 93.3% increase in Chevrolet Trax sales and profitability in entry-level segments, while luxury vehicle sales declined by 2.8%. Analysts suggest that the shift towards smaller, more affordable vehicles may signal a longer-term change in consumer preferences, particularly as high interest rates affect purchasing decisions. Scotiabank forecasts new vehicle sales to reach 1.78 million in 2024, with a slight recovery expected in 2025 as interest rates stabilize.