1) The Canadian auto retail market saw record sales in 2015, with continued strong sales of trucks and SUVs displacing some sedan sales. 2) The transportation model is shifting from ownership to mobility, with consumers preferring pay-as-you-drive options over ownership. 3) Low interest rates, subsidies, and incentives contributed to the large flow of money that powered sales in 2015. However, managing negative equity for trade-ins is becoming increasingly challenging.

1. by
Strada IQ
January 2016
CANADIAN SALES
2015

2. Record Year
How else to describe it,
simply remarkable
The retail auto business in
Canada is smashing records
on top of records.
Did you ever think that so
much “iron” could be moved?
While the continued
emergence of “trucks”
continues unabated.

3. New Transportation
Model
We have been hinting for
some time.
The transportation model is
inexorably migrating from
ownership to mobility.
It’s a case of pay as you
drive.
Why own it?

4. Free Flowing Money
Low rates, subsidies,
incentives.
It’s the perfect money storm.
The flow of money is fast and
furious.
What else can you say.

5. Negative Equity
The ability to deal with
negative equity while
upholding the magical 36
month cycle is all important.
Although its becoming
increasingly challenging to
“roll over” negative equity into
a new financial package.

6. Leasing
As expected with the
Canadian dollar losing value.
There is a corresponding
increase in leasing.
This trend will continue.
Providing a compelling
advantage to some
manufacturers.

7. Who Is Ahead
Porsche: + 30%
Lexus: + 25%
Acura: + 16%
Mercedes-Benz: + 15%
Nissan: + 13%
Subaru: + 11%
Audi: + 9%
Land Rover: + 7%
VW: + 7%
BMW: + 7%
GM: + 5%

8. Who Is Behind
Jaguar: - 11%
Ford: - 5%
Kia: - 3%
Hyundai: - 2%
For the year the market is up
by 2.5%.

9. CPO
Certified Pre Owned sales
have experienced
appreciable increases in
2015
Especially for the
manufacturers with strong
programs.

10. • Jetta…………..…….27,719
• Toyota Camry……..16,805
• Ford Fusion………..15,781
• Honda Accord.........14,465
• Hyundai Sonata..…13,497
• Chrysler 200…..…..10,961
• Chevy Malibu……....9,203
• Nissan Altima……….7,293
The Jetta endures, for now. With Camry
and Fusion trading paint.
• Honda Civic……..64,950
• Hyundai Elantra…47,722
• Toyota Corolla…..47,199
• Mazda 3……........34,811
Segment is feeling the truck pressure
with the Civic leading and the,
Elantra beating the Corolla.
Click on Corolla to see a review/photo gallery
All Figures from Automotive News
SOME NUMBERS
THREE QUARTER 2015
Compact Mid Size Sedans

11. • Ford F Series…..…..118,837
• Ram…………….……91,195
• GMC Sierra…..……..53,727
• Chevy Silverado……46,408
The segment continues to grow with an
established order.
Click on F Series, Ram, Silverado to see a review/photo
gallery
• Ford Escape……….47,726
• Toyota RAV4……….42,246
• Honda CR-V……….38,961
• Nissan Rogue……...35,841
• Hyundai Santa Fe…33,246
• Jeep Cherokee….…31,833
• Chrysler Journey…..25,646
• Chevy Equinox….....19,766
The Escape owns this segment, with the
RAV4 generating increasing
competition.
SOME NUMBERS – 1
THREE QUARTER 2015
CUV/SUV Pick Up

12. • Audi Q5……………………8,203
• Acura RDX………..…..….7,380
• Lexus RX…………………7,063
• M-B M Class………….…..6,009
• BMW X5…………………..5,381
• Acura MDX…….……....…5,814
• M-B GLK…………....……5,304
• Cadillac SRX……........…4,886
• BMW X3………....…….…4,527
• Infiniti QX60………......…3,863
• Buick Enclave……………3,361
• BMW X1……………..……2,942
• Range Rover Sport…..…2,680
• Lincoln MKX……………..2,900
• M-B C Class……..…9,992
• BMW 3 Series………9,590
• Audi A4………......…5,461
• Acura TLX.……….…5,075
• Lexus IS…….…..…..3,401
• Infiniti Q50………..…3,295
• Cadillac ATS……..…3,493
• Lincoln MKZ……..….1,130
• Cadillac CTS……….…537
The C Class leading with the TLX and IS
still disrupting.
Click on TLX-Q50-CTS to see a review/photo gallery
SOME NUMBERS – 2
THREE QUARTER 2015
Entry Luxury Luxury SUV/CUV

13. • Lamborghini…...………..122
• Maserati………….….….507
• Ferrari…………...….…..216
• Panamera…..…….…….341
• GT-R…………………..…130
• R8………….…….…..…..89
• Rolls-Royce……………..79
• Bentley………….…..….158
• Tesla Model S…………504
• Volt……………..……..1,463
• Leaf………….….….….1,233
• Lexus NX…………….6,127
• Audi Q3……….……..3,596
• M-B GLA…………….3,719
• Lincoln MKC…………2,970
• Porsche Macan……..1,639
• BMW X4……….….…1,144
The NX what can you say!
Click on NX and MKC to see a review/photo gallery
SOME NUMBERS – 3
THREE QUARTER 2015
New Entrants Did You Know

14. OUR THOUGHTS
2015
• Remarkable year that will be challenging to repeat.
• Free flowing money, be it finance or lease continues to power sales. Its an appreciable
profit opportunity for the providers of financial services.
• New models capture additional sales.
• Premium economy is stealing sales from several incumbents. With Mercedes-Benz
leading the way. Not only with new but also CPO sales.
• If you have the feeling that the Koreans had their day in the sun, we agree with you.
• Trucks, be it pick ups, SUV, CUV are displacing sedans. This trend will continue, with
customers seeking utility.
• Enduring migration from ownership to a mobility model.
• There is a “friction point” in showrooms which is counter productive for all the
stakeholders.
Thank You