Auto dealers in Western Canada have been hurt more than their counterparts elsewhere in the country, according to a Scotia Economics global auto sales report.
Auto sales in B.C. and Alberta have fallen 35% year-over-year, which is 10% more than the national average, the report said.
Car and light truck sales in B.C. have fallen to an annualized 130,000 units in the first two months of 2009, more than 30% below the record of 198,000 set in 2007. The report said the drop reflects slowing construction activity, ongoing declines in the forestry sector and a sharp deceleration in employment prospects.
Alberta's auto sales also fell more than 30% due to the massive decline in oil prices and the subsequent cancelling of more than $40 billion in oilsands-related capital projects. Retail sales in Alberta have also been hurt, and vehicle sales are posting double-digit year-over-year declines since November.
Ontario auto production is expected drop 30% this year, the largest decline on record and the second consecutive double-digit annual drop in the province.
The Scotiabank report said Saskatchewan and Manitoba are expected to see relatively moderate declines in auto sales: Saskatchewan: a 4% decline to 46,000 units from 48,000 units in 2008; Manitoba: a 7% decline to 41,000 units from 44,000 in 2008.