May 18, 2021

Delays Equal Volatility for Canada’s Auto Sector

Volatility has been a theme shadowing the automotive sector, and indeed the broader economy, since the onset of the pandemic over a year ago.

Specific to the auto space, we have been through record dips in used car sales, to record highs and similarly unprecedented used car price drops to month-over-month record breaking used car value gains across the board.

There has been a multitude of COVID related disruptions at OEM and parts suppliers globally, adding to growing new vehicle supply issues. Domestically, new and used supply is staggeringly low, for a number of reasons. Volatility in supply is a major cause of volatility in prices.

Source: Autosphere

Tire and Rubber Association of Canada

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