Toyota Canada Inc. and its Lexus unit are additionally forecasting progress throughout Canada, although not essentially a gross sales increase.
“It looks very stable. Population growth is strong, [and] fundamental economics are obviously strong,” mentioned Toyota Canada CEO Larry Hutchinson.
Lexus bought 16,243 autos in Canada within the first six months of 2023, a brand new excessive for the model. This compares with 12,115 items bought over the identical interval final 12 months and 12,321 throughout the first half of 2019, earlier than the pandemic and ensuing provide chain issues crimped car output.
Lexus accounted for 15.1 per cent of Toyota Canada’s whole gross sales by way of the primary half of 2023, in contrast with 11.6 per cent and 10.2 per cent of whole gross sales in 2022 and 2019, respectively.
While car manufacturing has improved over the previous six months, demand continues to outpace provide, Hutchinson mentioned. That means Lexus dealerships are nonetheless seeing “a lot of pent-up demand.”
As with Policaro, Hutchinson mentioned Lexus has not seen any indication that patrons are leaving the posh market due to greater rates of interest. On July 12, the Bank of Canada raised its benchmark fee to 5 per cent, its highest stage in additional than 20 years.
Eventually, King mentioned, the upper rates of interest will “bite” the posh market, however the short-term outlook for the phase is “certainly” optimistic.
Coupled with the long-term demographic traits fueling luxurious gross sales, King mentioned, the highest half of Canadian earners have been placing away massive quantities of cash because the begin of the pandemic and are discovering new methods to dispense it.
“There’s a lot of money there,” he mentioned, “and you see them spending it on travel, obviously, and on restaurants and on luxury vehicles.”