Context matters as the latest automotive sector retail data points to growing weakness across the broader Canadian economy.

During the first quarter of 2026, automotive retail sales remained remarkably resilient despite Canada entering a technical recession, continued uncertainty around trade issues and softness across several key automotive segments.

It should also be noted that the reported statistics reflect dollar sales, not units, which is particularly relevant when one looks at both the rise in gasoline prices, but also in the in the used car segment where prices are moderating to a degree.

Gasoline stations led the sector, posting a 2.1 per cent increase in retail sales for the quarter. In March alone, sales were up 16.0 per cent compared with March 2025, largely reflecting higher fuel prices. The increase would have been even greater had it not been for the elimination of the federal carbon tax on April 1, 2025.

At the other end of the spectrum, used-vehicle dealers experienced a 1.1 per cent decline in sales compared with the first quarter of 2025, though volumes remained near historic highs.

New-vehicle dealers posted a modest 0.2 per cent gain, while automotive parts, accessories and tire retailers recorded a 0.6 per cent increase.

“Retail sales in the automotive market have remained fairly stable even as Canada at large officially entered a recession,” said Andrew King, managing partner at DAC. “These days, stability is a welcome enough outcome given the broader challenges.”

For the aftermarket, the results reinforce a trend seen throughout the past year: while economic uncertainty continues to weigh on consumer spending and vehicle purchases, maintenance and repair activity has remained comparatively resilient. With Canadians keeping vehicles longer and delaying major purchases, parts and service demand continues to provide a measure of stability in an otherwise unsettled market.