Canadian Motor Vehicle Sales Post Strong Gain in First Quarter

Motor vehicles sales posted a strong gain in the first quarter, rising 7.9% relative to the average pace in the fourth quarter of last year. The rise reflected a very robust rise in January with sales in both February and March faltering. In March sales slipped by 0.5%, a slower pace of decline than February’s 3.1% dip. The one percentage point cut to the Goods and Services Tax, falling prices and manufacturers’ incentive plans and rebates supported the strong first quarter performance. The March CPI report showed that prices for purchasing and leasing vehicles were 7.1% lower in March 2008 than a year earlier reflecting dealer incentives and lower list prices compared with March 2007.

RBC Financial Group
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The statements and statistics contained herein have been prepared by the Economics Department of RBC Financial Group based on information from sources considered to be reliable. We make no representation or warranty, express or implied, as to its accuracy or completeness. This report is for the information of investors and business persons and does not constitute an offer to sell or a solicitation to buy securities.