It’s been a tough first half for Canadian auto sales, and some automakers are coping with the down market better than others.
After 16 months of steady decline, new-vehicle sales in Canada through the first half of 2019 were down by 5.5% from 2018’s already depleted numbers. In real terms, that’s a deficit of more than 50,000 units.
Not all the news was bad, however, as a couple of automakers made absolute sales gains during the period and several more at least outperformed the market, increasing their market share as a consequence.
Here, in alphabetical order by manufacturer, is how we graded them on our annual mid-year report card, based on sales numbers, changes in market share, and prospects for the rest of the year, considering product in the pipeline:
Acura – B
After a flat performance in 2018, Acura’s sales were down 2.7% through the first half of this year — ahead of the market by a bit, but hardly inspiring. What’s potentially worrying is that, unlike most brands, its utility vehicle sales were down, with the entry-level ILX sedan the only Acura model to realize gains. While rumours persist of new models in the making, there’s nothing coming for the rest of this year to make things better.
Audi – C
What a difference a year makes! From the top of the heap a year ago and a positive end to 2018 as a whole, Audi’s sales were off by 20.6% through H1 2019, and it’s given up 0.3% in market share — making it the biggest loser among the German luxury brands, which have been hard hit by the downturn. The all-electric e-tron has found a few sales and some refreshed high-performance models are coming, but the imminent arrival of a new Q3 SUV is Audi’s best hope for H2.
BMW – B
BMW has dropped a bit behind the market in 2019, with sales down by 6.6%, so far, following a slight gain in 2018. While passenger-car sales were generally down, the all-new Z4 sports car and 8-series coupe have injected some new vigor on that side of the ledger, and all-new X5 and X7 SUVs have helped offset the declines on the car side. There are new M and Gran models in the pipeline, so expect BMW to keep holding its own through this luxury car lag.
Not all the news was bad, however, as a couple of automakers made absolute sales gains during the period and several more at least outperformed the market, increasing their market share as a consequence.
Fiat Chrysler Automobiles – C
While it wasn’t the worst performer of the Detroit Three in percentage terms, FCA’s 12.7% sales decline, on top of a 15.8% drop in 2018, left it down a full 1.0% in market share at mid-year — the second-biggest loss of any automaker. The decline was distributed across FCA’s multiple models, with only some commercial vans and the Jeep Compass, Grand Cherokee, and all-new Gladiator pickup making positive numbers. There’s nothing coming soon that’s likely to offer much relief.
Ford – A
Once again, Ford was the market leader at mid-year; the F-Series was the runaway best-selling vehicle, and neither were facing any serious threat. While its sales were down by 0.9% from last year, the Blue Oval gained 0.7% of market share. The soon-to-be-discontinued Fusion showed some gains among passenger cars and most of the products on the truck/SUV side made minor gains, or more. Looking forward, is it really wise to be getting totally out of the passenger-car business?
General Motors – C
Unlike last year, when it was in a fight for first place, or 2018 year-end when its sales were only slightly behind the market, by mid-2019 GM’s sales were down 14.2% from a year ago — more than 30,000 vehicles. And its market share was down by 1.3%, the biggest share loss in the industry. The declines were widespread across product lines, but the demise of the Cruze and poor results for full-size pickups were the biggest offenders. Unfortunately, and in spite of the new mid-engined Corvette, there’s not much coming to offer relief.
Genesis – A
While it’s still a minor player in terms of total numbers, Genesis continues to make progress as a stand-alone luxury brand. Its mid-year sales were up 34.2% from 2018 and its reputation for quality was enhanced by a repeat performance at the top of J.D. Power’s Initial Quality Study. It’s limited by its sedan-only lineup however, and although there’s a crossover in the works, it won’t arrive in time to help this year’s sales.
Honda – A
As it did through 2018, Honda is staying just ahead of the market through the first half of 2019, with sales down by 3.9% and market share up by a tenth. The Civic is still Canada’s best-selling car overall, although not every month, and its year-to-date sales are off almost 10%. What gains there have been have come mostly from the Pilot and all-new passport SUV. There’s nothing else new in the immediate future, however, so expect the rest of 2019 to be a continued holding pattern.
Hyundai – A+
After a relatively flat 2018, Hyundai has come on strong in the first half of 2019, with sales up by 5.9% — the greatest percentage gain of any full-range brand. In a down market, that gain has improved market share by 0.7%, tied for second-best increase in the industry. The Ioniq and Veloster have helped Hyundai’s car sales, although they’re down overall, and there’s strength among utilities, particularly Kona and Tucson. The all-new Palisade promises even more. Combined with continued quality accolades, it’s a good time to be Hyundai.
Infiniti – B
Infiniti beat the market in 2018 with sales up 1.2%, and it’s holding its own in 2019 with just a 3.6% decline in a market that’s down by 5.5% — even more among luxury brands. Sales are down across all model lines, with the exception of the new-for-2019 QX50, which has been the bright spot for the brand. With nothing else new that’s imminent, we expect more of the same for the rest of the year.
Jaguar – C
Being a relatively low-volume, high-priced manufacturer, Jaguar’s fortunes tend to ebb and flow dramatically and they’re currently ebbing. Sales were down 5.9% in 2018 and they’re off by 14.4% through the first six months of this year. Sales of the F-Pace crossover are relatively stable and the much-awarded I-Pace fully-electric vehicle has added some volume, but not enough to offset big declines on the passenger-car side. Tough times for the legendary Indo-British brand.
Kia – A+
Kia sales were off by 4.6% in 2018, but they’ve increased by 3.8% so far in 2019, gaining 0.3% of market share in the process. Increased sales for the high-volume Forte and Soul helped keep passenger car sales close to flat, as was the case for most of the brand’s utility vehicles. The big gains, however, came from the Niro and the all-new Telluride utilities. As is the case for its sibling brand Hyundai, top-tier rankings in quality ratings are undoubtedly helping Kia’s cause.
Land Rover – B
Land Rover finished 2018 strongly, with sales up by 11.5% and it’s stayed ahead of the market through the first half of 2019, with sales down just 1.6%. While the traditional Discovery models have shed sales, the Range Rover has gained a few, as has the lineup’s latest Velar model. In addition, a new Evoque is fresh to market, so we expect Land Rover to hold its ground through the rest of the year.
Lexus – A+
Having finished 2018 slightly ahead of the market average, Lexus bucked the 2019 trend toward diminishing luxury brand sales with a 7.1% gain in H1, and a corresponding 0.2% bump in market share. The all-new ES and racy RC pushed passenger car sales up in a severely down market, while the LX and new UX utilities more than offset declines for the best-selling, Canadian-built RX model. It’s a fresh enough product line to keep the momentum going.
Maserati – C
The novelty of a Maserati sport utility seems to have worn off as the brand’s already low sales volume shrank dramatically in 2018, and fell a further 34.2% in the first half of this year — the biggest percentage decline in the industry. Despite the new availability of Ferrari-sourced V-8 engines, sales of the top-selling Levante SUV were down substantially and those of the Italian brand’s passenger cars even more so. There’s nothing to suggest any rapid turnaround.
Mazda – C
Despite a relatively flat 2018 and much critical acclaim for its products, Mazda underperformed in terms of sales in the first half of 2019, with numbers down by 15.8% from a year ago and a 0.4% share loss. The declines were spread across the model lineup, but were most significant for the CX-3 utility and high-volume Mazda3 sedan. Improved availability of the latter, which is all-new and now available with AWD, should help improve the situation, as should a new CX-30 when it arrives.
After a relatively flat 2018, Hyundai has come on strong in the first half of 2019, with sales up by 5.9% — the greatest percentage gain of any full-range brand.
Mercedes-Benz – C
Mercedes-Benz is still the best-selling luxury vehicle brand, but its sales lagged the market average in 2018 and they’ve dropped even further in 2019, down by 17.7%, with market share off by 0.4%. A sales injection from the new A-Class failed to offset losses for the C-Class and CLA passenger cars, and even sales of the brand’s utility and commercial vehicles were down. New GLS models in the pipeline could help, but all the German luxury brands are hurting.
Mini – C
Mini sales finished 2018 relatively flat, but they’re off by 13.0% for the first half of this year. A new all-electric model has been announced, but it won’t arrive in time to help with the rest of this year. With nothing fresh to offer, we don’t expect much to change for Mini.
Mitsubishi – A
Following a strong 11.1% sales gain in 2018, Mitsubishi’s pace has slowed a bit but it was still well ahead of the market mid-2019, with sales up by 2.9% and a 0.1% share increase. The gains were spread across Mitsubishi’s SUV-heavy lineup, but were most significant for the new-last-year Eclipse Cross and the Outlander PHEV, which is Canada’s best-selling plug-in hybrid. Seems like Mitsubishi has found its niche.
Nissan – B-
Nissan finished 2018 strongly with sales up 1.7% in a down market, but those for the first half of 2019 were down by 6.6%, lagging the sagging market, and market share also fell by 0.1%. That leaves the Japanese automaker in a tough fight with Hyundai to retain its sixth-place ranking. All the brand’s passenger car sales were down, several of them dramatically, and the only utilities to make significant gains were the Qashqai and the all-new Kicks. The brand’s best hope for a stronger H2 is that the all-new, now AWD Altima will find an audience.
Porsche – A+
Porsche thoroughly outperformed the market in 2018 with a 7.9% sales increase and continued that trend through H1 2019 with a further 7.4% improvement. All those 2019 gains can be attributed to a revamped Cayenne SUV, but there’s an all-new 911 arriving this fall that could change that equation. Plus a pair of six-cylinder 718s. Porsche’s long-proven strategy of keeping the market stimulated with something new just keeps on working!
Smart – C
Smart’s sales have always tended to yo-yo on a percentage basis, given its low absolute sales numbers. Following a move to electric-only power, they finished 2018 down 6.4%, slightly behind the market, and they’ve been relatively flat, up 0.5%, in 2019. But it’s the low absolute numbers that finally doomed the car, which is expected to be withdrawn from the North American market after this model year.
Subaru – A-
Subaru was one of the success stories of 2018 with sales up 6.4% in a down market and it has continued to outpace the market in 2019. Sales were down by 1.7% through the first six months, but market share was up a tenth, given the smaller overall market. Passenger car sales remained relatively strong, apart from the high-performance WRX, and the all-new Ascent offset declines for the Crosstrek and Outback on the utility side. All-new Legacy and Outback models coming this fall should help maintain the momentum.
Toyota – A+
Toyota’s relentless pursuit of sales and market share continues unabated. Sales were up by 3.9% in 2018, and another 3.3% through the first half of 2019, resulting in a 0.9% gain in market share — the biggest increase in the business. Passenger car sales were down, in spite of big bumps from the Yaris and all-new Camry, but strength on the utility side, especially from the Canadian-built RAV4, boosted total sales into positive territory. The imminent arrival of the all-new GR Supra should stimulate both image and sales.
Toyota’s relentless pursuit of sales and market share continues unabated.
Volkswagen – A
With its diesel woes seemingly behind it, Volkswagen’s sales improved by 3.7% in 2018 and they held their own through H1 2019, up by 0.7%. In a down market, that small gain improved market share by 0.2%. Sales increases for the Jetta and near-end-of-the-line Beetle helped offset declines on the car side, but the big gains came from the U.S.-built Atlas and Tiguan SUVs. VW’s big electrification push has yet to make its impact here, but for now the brand’s model diversification plan seems to be working.
Volvo – A+
Volvo has been on a roll for the past couple years and it is still going. Sales were up by 29.8% in 2018 and they’re ahead a further 7.4% at mid-year 2019, adding another tenth to market share. Unlike for many other automakers, Volvo’s gains came from both cars, in the form of the S60/V60 line, and utilities, specifically the new compact XC40. Without imminent new models, Volvo is experimenting with innovative customer services and experiences to keep the momentum going.
