Dealers optimistic about North American brands and traditional gas
TORONTO, Feb. 8 /CNW/ - Canadian auto dealers are reporting an estimated
12% market increase in 2010 and solid profits are expected to continue
in the next decade, according to the 2010 Trendsetter Survey released today. The annual survey of new Canadian car dealers is conducted by PwC,
DesRosiers Automotive Consultants Inc. and Seguin Advisory Services.
Sales increase for Canadian car dealers
Dealers reported new vehicle sales for 2010 are up 9% and they expect
the market to increase 7- 8% in 2011.
In 2010, small market dealers reported a 20% increase in sales compared
to only a 3% increase for large market dealers that sell more than
1,000 units per year.
Dealers are optimistic about future sales volumes of alternate fuelled
vehicles, forecasting consumers will buy 14% more vehicles this decade
"Auto manufacturers are getting their groove back and more consumers are
buying new vehicles, which are two positive factors impacting Canadian
car dealers," says Terri McKinnon a partner in PwC's automotive
practice. "The industry saw an overall recovery in sales, but more
importantly, profitability is also increasing which indicates measures
taken by dealers during the downturn are paying dividends."
Gas vehicles will still dominate this decade
Dealers believe Canadian consumers aren't buying into alternative fuel
vehicles. In fact, the survey forecasts conventional gas vehicles will
still account for 96% of light-vehicle sales this decade.
However, most are optimistic about diesel-powered products, and believe
that gas-electric hybrids will break through this decade and more than
quadruple in sales. At the same time, dealers don't see plug-in
electric as the vehicle of choice for the coming decade, predicting
only 50,000 will be bought over the next 10 years.
Ford, GM jump to 'best positioned brands'
This year, Ford overtook the top spot as the "best positioned" brand in
the market from Toyota/Lexus, which has fallen to third place. GM made
the biggest jump this year moving to second place from eighth place
"The shakeup in rankings is in part explained by the product recalls
that plagued Toyota throughout 2010, which explains their drop to third
place," says Dennis DesRosiers, President of DesRosiers Automotive
Consultants Inc. "For GM, dealer consolidation has appeared to be
paying dividends given the company's sharp rise to second place."
Overall, dealers are negative about the prospects from Fiat as a brand
in Canada and more than half indicated that Fiat does not add value to
Chrysler branded stores. Instead, the majority of dealers seem to be
favouring Chinese and Indian brands over Fiat.
2011 Canadian International AutoShow
PwC's National Automotive team is available for comment regarding auto
trends and issues currently affecting the industry during the 2011
Canadian International AutoShow taking place February 18, 2011. Please
contact Kiran Chauhan, (416) 947-8983, email@example.com or Jessica Draker, (416) 869-8723, firstname.lastname@example.org for more information.
To read the full survey, please visit: www.pwc.com/ca/trendsetter. The report is also available from the media contacts.
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For further information:
Kiran Chauhan, PwC
Tel: 416 947 8983
Jessica Draker, PwC
Tel: 416 947 8983