- The Canadian auto sales market had a record first half of 2016, with the overall market up 6% from the previous year. Truck sales significantly outpaced sedan sales, with trucks making up 65% of sales. - Incentive programs powered by manufacturers' money have been crucial to moving vehicles and closing deals, especially with the issue of consumers having negative equity from previous loans. - Entry-level luxury sedan segments are facing increasing pressure and competition, while luxury SUV/CUV segments continue to expand and have strong sales battles between manufacturers. Pickup truck sales, particularly for the Ford F-150, remain very strong.

1. by
Strada IQ
July 2016
CANADIAN SALES
FIRST HALF 2016

2. Record Half
Words are not enough.
The auto business in Canada
is reshaping reality.
By now moving a ton of iron
is “normal”.
Yes…trucks are mainstream.

3. Is it a Challenge?
April: + 8%
May: - 2%
June: + 7+
YTD: + 6%
A bit if a roller coaster in the
2nd quarter.
But still appreciably ahead for
the year.

4. Incentives
Where would the auto
business be without tactical
monthly incentives?
Programs powered by
money.
It’s the perfect storm.
What else can you say.

5. Elephant
Negative equity is the
elephant.
Managing and “rolling over”
negative equity is crucial to
conduct business and close
deals.
Consumers love it.

6. Trucks
Who wants a truck?
More and more and more.
Who wants a sedan?
Less and less.
At the end of the first half the
split is 65% trucks and 35%
cars.

7. Who Is Ahead
Land Rover: + 39%
Volvo: + 34%
Audi: + 16%
Ford: + 12%
Honda: + 12%
Nissan: + 10%

8. Who Is Behind
VW: - 14%
Acura: - 7%
Mazda: - 2%
For the year the market is up
by 6%.

9. Free Flowing Money
Not to be repetitive, but free
flowing money is a great
enabler for the auto
business.
Especially when it comes to
used vehicle sales which are
an intrinsic component of the
business.

10. Longer Loan Terms
The length of the loan terms
is inexorably creeping up.
Obvious that everyone is
pushing the envelope in
dealing with negative equity.
While the terms get longer.
Chart from JD Power

11. Too Much Car
How often do you hear that
“Canadians are buying too
much car with too many
features”
Who trades down?
Easier to roll over when
trading up. Same monthly,
newer, with more features.
Is it a good thing?

12. • Jetta…………..……10,749
• Toyota Camry……....9,350
• Ford Fusion…….…..7,263
• Honda Accord..........7,230
• Chevy Malibu………6,417
• Nissan Altima……….4,912
• Hyundai Sonata….…4,502
• Chrysler 200………..4,087
Jetta persists…Wow
• Honda Civic….…..33,193
• Hyundai Elantra…..25,511
• Toyota Corolla……24,370
• Mazda 3………......14,156
• Chev Cruze……….11,368
The effect of the new Civic, Elantra and
Corolla are trading paint.
All Figures from Automotive News
SOME NUMBERS
FIRST HALF 2016
Compact Mid Size Sedans

13. • Ford F Series…..…..72,233
• Ram…………….……49,087
• GMC Sierra…..……..25,831
• Chevy Silverado……22,652
Surprising what a good supply of F Series
can do. Notice that the RAM and GM
pick ups are “scraping paint”.
• Toyota RAV4……….24,465
• Ford Escape……….20,554
• Honda CR-V……….19,906
• Nissan Rogue………18,433
• Hyundai Santa Fe…16,882
• Jeep Cherokee….…16,750
• Chevy Equinox….....9,482
• Chrysler Journey…..7,980
RAV4 still ahead with Escape clawing its
way back, CRV and Rogue trading
paint.
SOME NUMBERS – 1
FIRST HALF 2016
CUV/SUV Pick Up

14. • M-B M Class………….…..4,031
• Audi Q5……………………4,029
• Lexus RX…………………3,809
• Acura RDX………..…..….3,511
• BMW X5…………………..3,352
• BMW X3………....…….…2,850
• Acura MDX…….……....…2,446
• Cadillac SRX & XT5.....…2,367
• BMW X1……………..……2,268
• Infiniti QX60………......…2,035
• M-B GLK…………....……1,983
• Buick Enclave……………1,916
• Lincoln MKX……………..1,732
• Range Rover Sport…..…1,573
It’s a street fight!
• M-B C Class……..…4,592
• BMW 3 Series………3,271
• Audi A4……….....…2,736
• Acura TLX.……….…2,082
• Lexus IS…….…..…..1,435
• Infiniti Q50………..…1,365
• Cadillac ATS……..…1,191
• Lincoln MKZ……....….442
• Cadillac CTS……….…362
A ton of market pressure and
competition on entry level luxury
sedans.
SOME NUMBERS – 2
FIRST HALF 2016
Entry Luxury Luxury SUV/CUV

15. • Lamborghini…...………..85
• Maserati………….….….268
• Ferrari…………...….…..108
• Panamera…..…….…….129
• GT-R…………………..…53
• R8……….….…….…..…..59
• Rolls-Royce……………..42
• Bentley……….….…..….41
• Tesla Model S…….…1,080
• Volt……………..……..1,292
• Leaf…………..….….….617
• Lexus NX…………….2,825
• M-B GLA…………….2,476
• Audi Q3……….……..2,068
• Volvo XC90……….…1,462
• Lincoln MKC…………1,326
• Porsche Macan……..1,168
• BMW X4………….….…600
• Chrysler Pacifica……..248
The NX persists. Yes the XC90 is the best
selling Volvo. Let’s watch the Pacifica.
SOME NUMBERS – 3
FIRST HALF 2016
New Entrants Did You Know

16. OUR THOUGHTS
FIRST HALF 2016
• Record shattering first half what else can you say.
• Mobility is the model…forget ownership.
• Migration from sedans to trucks continues.
• Entry level luxury sedan segment under increasing pressure.
• Luxury utility segment continues to expand.
• F 150 is almost through the roof with improved availability.
• Power of money endures + longer term loans.
• Is it competitive? Absolutely…what do you think?
• Will it continue? We believe it will, just imagine if Alberta was all good.
Thank You