Retail sales in Canada’s automotive sector continued their upward trajectory in 2025, with both new vehicle dealers and the independent aftermarket posting gains.

According to DesRosiers Automotive Consultants (DAC), new vehicle dealers recorded a 3.6% increase in current-dollar retail sales for the year, reaching a record of more than $181 billion, supported by both vehicle sales and strong fixed operations performance.

The independent aftermarket also saw continued growth.

Retail sales at automotive parts, accessories, and tire stores rose 3.9% in 2025, also reaching a record high. Compared to 2019, the contrast is even more striking: sales at new vehicle dealers are up 30.9%, while the aftermarket has grown 49.2%. In constant dollars, that translates to gains of 13.6% and 19.8%, respectively.

For independent repair shops, that sustained growth reflects a combination of factors, including continued demand for maintenance and repair as vehicles remain in service. While the data does not break out service specifically, the strength in parts and tire sales points to ongoing activity across the broader aftermarket.

Andrew King, Managing Partner at DAC, noted that while conditions remain favourable, the outlook is not without challenges.

“The aftermarket is indeed enjoying halcyon days, although there are uncertain waters ahead for the industry as changes in the structure of the fleet, vehicle technology, and access to data create increasing challenges,” he says.

Fuel prices remain another variable influencing the market. Retail sales at gasoline stations declined 2.8% in 2025, continuing a downward trend from a peak in 2022.

The decline was not driven by reduced fuel consumption, but rather by lower prices in many regions following the repeal of the carbon tax.

That trend may has shifted lately. After several years of easing prices following the 2022 peak tied to the Russian invasion of Ukraine, recent geopolitical developments have begun to push fuel prices higher again. The impact on kilometres driven—and, by extension, maintenance demand—will be closely watched.

In other research, the impact on km driven has been shown to be muted–a 10% increase in fuel costs translating into a 1% reduction in km driven–but rising fuel costs have an impact on all sectors of the economy and therefore the pocketbooks of teh driving public

For now, the data points to a resilient aftermarket, with growth continuing to outpace the new vehicle side of the business. However, as fleet composition evolves and external pressures, from fuel prices to technology, continue to change, the shape of that demand may look different in the years ahead.