Saskatchewan experiences a 20% drop in car sales compared to the days before the pandemic | The Canadian News

Severe inventory shortages and global supply chain problems have left car buyers and sellers in a tough spot.

In 2013 in Saskatchewan, nearly 60,000 new vehicles were purchased.

In the past two years, that number has bottomed out at about 40,000 per year.

The story continues below the ad.

Read more:

Low supply sent Canadian car sales down more than 17% in October: consultants

It is not just in Saskatchewan. In Canada, from 2020 to 2021, new motor vehicle sales fell 17 percent.

Approximately 130,000 vehicles were sold in October 2021, which is the lowest monthly total in the country since 2011.

“We still have a shortage of semiconductors and problems in the supply chain. Consumers really have fewer options when buying cars and it will be a long time before things change, ”says automotive journalist Dale Johnson.

Click to play video: 'Navigate the microchip shortage to find your dream car'

Navigate the microchip shortage to find the car of your dreams

Navigate the Microchip Shortage to Find Your Dream Car – Aug 27, 2021

Semiconductors, often referred to as microchips, are often produced in Asia, where impacts related to the pandemic are affecting the global supply chain.

Microchips provide vehicles with features like driving aids, adaptive cruise control, and backup cameras, to name a few.

The story continues below the ad.

Producing fewer microchips means fewer cars are heading to North America and ending up at dealerships.

Johnson added, “The shortage of microchips directly affects Saskatchewan because the chips are prominent in trucks, which is one of the most popular vehicles in the province.”

Read more:

GM cuts production amid chip shortage, Canadian car sales plummet

Susan Buckle is the Executive Director of the Saskatchewan Automobile Dealers Association (SADA) and explains what the last two years have done to the industry.

“We’re down about 20 percent in our new vehicle sales compared to the days before COVID, so that’s pretty significant,” Buckle said.

“I’m sure everyone sees it while touring the province; there is very little inventory on the dealer lots. “

Buckle said inventory is increasing with the arrival of new vehicles, but he doesn’t expect them to change much until late spring 2022.

© 2021 Global News, a division of Corus Entertainment Inc.

Leave a Comment