Light trucks drive sales in November

While the sales rally in November was a rather modest gain of 3.6%, the overall total of 138,694 units set a new record high for the month in Canada. As in previous months, strong demand for light truck models dominated the market with a 10.2% gain to 84,826 units, while sales of passenger cars languished in November falling 5.3% YOY to 53,868 units.

Japanese brand sales rose slightly overall in November up 1.3% to 48,358 units among all JAMA Canada members. As in the market as a whole, truck sales accounted for all of the gain, rising 8.8% to 24,559 units, while passenger car sales dropped 5.5% to 23,799 units. This is the first month since February 2014 that light sales exceeded passenger car deliveries by a small margin. Among individual member companies, Nissan Canada was the growth leader (+21.5%) in November, followed by Subaru Canada (+6.4%) and Honda Canada (+5.9%).

YTD Results (Jan – Nov)

Light vehicle sales in Canada have increased 5.4% to 1.718 million units through the first 11 months of 2014, and continue on track to reach a new record sales peak this year — YTD sales are only about 25,000 units short of 2013 in total. YTD truck sales were up 10.3% to 1,003,087 units, while passenger car sales have dipped down 0.8% to 715,124 units. As a result, light trucks represent 58.4%, and cars stand at 41.6% of total sales in Canada.

Sales of Japanese brand vehicles grew 7.4% through the end of November to 582,621 units – only 1,320 units short of the calendar year total of 583,941 units in 2013. All JAMA Canada members are ahead of last year – Nissan Canada (+26.8%), Subaru Canada (+14.2%), Mitsubishi Motor Sales Canada (+7.6%), Honda Canada (+5.1%), Toyota Canada (+3.0%) and Mazda Canada (+1.1%). Japanese brand market share stands at 33.9%, up from 33.3% in 2013.

Sales – November 2014

Source: Global Automakers of Canada / JAMA Canada members

Sales accelerate in October

Sales for October were up 6.5 percent to almost 155,000 units marking another all-time same month record for light vehicle sales in Canada. 

Japanese brands as a group recorded a 4.6% gain in October sales to 55,070 units. Light trucks (particularly small/med SUVs & crossovers) led the way with a 13.0% unit sales increase to 26,216 units, while sales of passenger cars slipped down 2.1% to 28,854 units.

Among individual JAMA Canada members, while all recorded YOY gains, the growth leader in October was Mitsubishi Motor Sales Canada (+31.0%), followed by Subaru Canada (+10.3%), Nissan Canada (+9.6%), Mazda Canada (+5.0%), Toyota Canada (+2.2%) and Honda Canada (+0.7%).

YTD Results:

As a result of strong demand, sales in Canada reached 1.579 million through the end of October, up 5.6% and in line for a record year. While car sales were relatively flat at 661,256 units, light truck sales jumped 10.4% to 918,261 units.

For all JAMA Canada members combined, sales have increased 8.0% for the first ten months of 2014 to 534,263 units. Moreover, all members were in positive territory for 2014 YTD. Car sales improved 4.5% to 286,504 units, while light truck sales jumped 12.3% YTD to 247,759 units. Market share for Japanese brands also improved to 33.8% for YTD compared to 33.1% during the same period in 2013.

Sales – October 2014

Source: Global Automakers of Canada / JAMA Canada members

September auto sales on a roll

Sales hit a crescendo in September as sales rose 12.6% overall to 167,919 units, the biggest YOY monthly gain for 2014.

As in many previous months, the gains were almost all on the truck side of the industry. Sales of light trucks jumped 22.2% to 100,789 units, as sales of passenger cars edged up 0.8% in September to 67,130 units.

Japanese automakers in Canada recorded a sales gain of 12.1% to 56,809 units in September. Light truck sales soared 25.9%, as sales of passenger cars were up just 1.7% compared to last September. All JAMA Canada members were in positive territory in September. The growth leader for the month was Mitsubishi Motor Sales Canada as deliveries soared 41.3% over the same month last year. Other members recorded double digit increases in September including Nissan Canada (+27.8%), Subaru Canada (+15.0%), and Mazda Canada (+12.2%).

Jan-Sept YTD:

Through the first three quarters, light vehicle sales in Canada were up 5.5% to almost 1.425 million units – on trend for setting a new record high in 2014. Robust demand for light trucks, particularly crossover vehicles, has lifted sales in this segment by 10.3% to 828,252 units at the end of September. By comparison, sales of passenger cars fell slightly down 0.6% to 596,316 units. Light trucks represent 58.1% of the light vehicle market in Canada, up from 55.6% in 2013.

Japanese brand light vehicle sales have grown 8.4% YTD to 479,193 units for all JAMA Canada members. Passenger car sales were up 5.3% to 257,650 units, while light trucks rose 12.2% to 221,543 units. JAMA Canada members’ market share stands at 33.6%, up from 32.7% in 2013. From another perspective, sales of vehicles mainly built in North America have jumped 18.7% to 350,722 units, while sales of models built in Japan have declined 12.4% to 128,471 units. As a result, currently 73.2% of Japanese brand vehicles sold in Canada were built in NAFTA (Canada, US & Mexico).

Sales – September 2014

Source: Global Automakers of Canada / JAMA Canada members

Continuing sales growth in August

Canadian new vehicle sales in August set another monthly record at 171,560 units, an increase of 7.9% compared to August 2013. While car sales edged up slightly (+0.1% to 70,939 units), light trucks set a record pace climbing 14.1% to 100,621 units.

Japanese brand sales in August slightly underperformed the overall market with a 7.0% gain to 58,092 units. Car sales among JAMA Canada members rose 4.2% to 31,793 units, while light truck sales jumped 10.6% to 26,299 units. Mitsubishi Motor Sales Canada was the growth leader in August recording a gain of 48.9% followed by Nissan Canada up 31.8% and Subaru Canada up 10.5% all compared with the previous year. Toyota Canada and Mazda Canada were both ahead with single digit gains.

YTD Results: (Jan – Aug)

The overall market in Canada has improved 4.6% through the end of August to almost 1.26 million units. The gain has been entirely driven by strong demand for light trucks (particularly cross-over vehicles). Car sales have dipped 0.8% to 529,186 units (a market share of 42.1%), while light truck sales were up 8.9% to 727,463 units.

As a group, Japanese automakers’ sales have grown 7.9% to 422,384 units for the YTD. Car sales rose 5.8% to 228,246 units, and light trucks were up 10.5% to 194,138 units. This result improved market share for JAMA Canada members to 33.6% from 32.5% in 2013. All members have recorded YOY sales gains led by Nissan Canada (+29.7%) and Subaru Canada (+15.8%). 

Sales – August 2014

Source: Global Automakers of Canada / JAMA Canada members

Production and sales of vehicles in Canada are also up, while imports from Japan decline

Exports of light vehicles manufactured in Canada by Japanese brand automakers rose by more than five per cent in the first half of 2014, while imports from Japan during the same period declined by more than 27 per cent, according to the Japan Automobile Manufacturers Association of Canada (JAMA Canada). Production of Japanese brand vehicles in Canada rose four per cent in the January-to-June period, while overall sales increased by nearly eight per cent, bringing the market share of JAMA Canada members to 33.7 per cent, up from 32.1 per cent during the same period in 2013.

“These are very encouraging production figures for Japanese brand automakers in Canada, putting them on track to achieve their highest-ever output in 2014,” said Jerry Chenkin, Chairman of JAMA Canada and President and CEO of Honda Canada.
 
“It’s also great news for the Canadian economy, as three-quarters of the vehicles our members build in Canada are exported, providing a significant boost to Canada’s balance of trade,” said David Worts, Executive Director of JAMA Canada.
 
The 7.9-per-cent increase in sales of Japanese brand vehicles in Canada through the first six months of 2014 outpaced the overall increase of 2.8 per cent for light vehicle sales by all automakers in Canada during the same period, according to JAMA Canada. Deliveries of Japanese brand light trucks increased 10.5 per cent while passenger car sales rose 5.7 per cent.

Currently, seven out of every ten Japanese brand vehicles sold in Canada are built in North America, with half of those built in Canada and half built in the United States and Mexico. Imports from the NAFTA region rose by 25.8 per cent in the first half of 2014 which, combined with the 27.7-per-cent decline in imports from Japan, suggests an even larger percentage of Japanese brand vehicles sold in Canada are being produced locally in North America.

“Canada has been a net exporter of Japanese brand vehicles for more than 20 years, with about 3.5 million more vehicles exported from Canada than the combined imports from Japan, the U.S. and Mexico,” said Mr. Chenkin. “This is due in large part to the billions of dollars of investments our members have made in Canada because of trade liberalization agreements such as NAFTA.”

Mr. Chenkin noted that JAMA Canada strongly supports further trade liberalization, including the conclusion of a Canada-Japan Economic Partnership Agreement (EPA) that would eliminate Canada’s 6.1-per-cent tariff on the one-third of Japanese vehicles sold in Canada that are imported from Japan and which include some of the most technologically advanced and environmentally friendly vehicles.

“With the recent developments in the Canada-South Korea trade agreement and the significant progress Canada and the EU have made in their Comprehensive Economic and Trade Agreement, it’s more important than ever to have a Canada-Japan EPA to maintain the competitiveness of Japanese brand automakers in the Canadian market and to support the more than 70,000 direct and indirect jobs in Canada from Japanese auto-related investments,” added Mr. Chenkin.

	YTD 2014	YTD 2013	% Chg.
SALES	306,205	283,900	7.9
PRODUCTION	483,534	464,892	4.0
EXPORTS	373,835	355,796	5.1
IMPORTS Total	178,141	181,509	-1.9%
Imports from Japan	67,835	93,806	-27.7%
Imports from NAFTA	110,306	87,703	+25.8

July sales on the rise

Light vehicle sales in Canada jumped 11% in July setting a new record for the month.

According to Carlos Gomes at Scotia Economics, “We estimate that sales totalled an annualized 1.93 million units last month, surpassing the previous peak of 1.89 million set in May … the gains were broad-based, with nine manufacturers reporting double-digit increases. Light trucks continue to outperform, advancing 16% above a year ago — more than triple the increase in car sales.”

Sales of Japanese brand vehicles did well in July, up 9.2% overall to 58,087 units – car sales rose 8.2% to 31,938 units, while light trucks gained 10.4% to 26,149 units compared to July 2013. While all JAMA Canada members were in positive territory in July, growth leaders were Nissan Canada (+39.8%), Mitsubishi Motor Sales Canada (+24.7%) and Subaru Canada (+10.5%).

Jan – July YTD:

The light vehicle market in Canada was up 4.1% to 1,085,089 units through the first seven months of 2014. Car sales dipped 0.9% to 458,247 units, while light trucks rose 8.0% to 626,842 units compared to the year prior.

Japanese brand sales were up 8.1% through the end of July to 364,292 units, increasing market share to 33.6% from 32.3% for the same period in 2013. Nissan Canada remains the growth leader for the YTD, (+29.3%), followed by Subaru Canada (+16.7%). 

Sales – July 2014

Source: Global Automakers of Canada / JAMA Canada members

By David Worts, Executive Director, JAMA Canada

The tabling of the final text of the bilateral free trade agreement with South Korea earlier this
month has brought Canada another step closer to its first trade agreement in Asia. While this
will open up economic and trade opportunities, Canada has a unique opportunity to further
strengthen its economy by finalizing a comprehensive trade agreement with Japan.

Canada-Japan bilateral trade exceeds $20 billion, allowing Canada to enjoy a trade surplus of
about $1.4 billion. That two-way trade figure has remained fairly constant for the past six
years, but a joint study by the Canadian and Japanese governments concluded that an Economic Partnership Agreement (EPA) between the two countries would move it to a much higher level.

Specifically, the joint study noted that a Canada-Japan EPA could result in gains to Canada’s
gross domestic product of between $4.1 billion and $9.8 billion, while Japan could see GDP gains of between $4.8 billion and $5.3 billion.

With figures like that, it’s no surprise that a recent survey by the Asia Pacific Foundation of
Canada shows considerable support in Canada for a free trade agreement with Japan. According to the survey, 55 per cent of Canadians are in favour of a trade deal with Japan. Only trade deals with Australia and the European Union had higher levels of support.

Like the Canadians who participated in the survey, Japanese automakers in Canada are also strong supporters of a Canada-Japan EPA to further trade liberalization in the Asia Pacific region. Although two-thirds of the vehicles Japanese automakers sell in Canada are built in North America — a result of previous liberalized trade deals such as the Canada-U.S. Free Trade Agreement and NAFTA — one-third continue to be imported from Japan to meet Canadians’ wide range of transportation needs. Removing the import tariff on those vehicles will be critical to maintaining equitable treatment of an industry that has invested over $9 billion in Canada to
date and which employs 70,000 Canadians.

The Canadian government has rightly made trade liberalization a cornerstone of its strategy to
boost Canada’s economic prosperity. Free trade agreements and EPAs are an important means to bring positive results in the short to medium term while furthering the broader long-term goal of trade liberalization.

With multilateral trade talks bogged down, Canada — like many countries — is looking to bilateral and regional preferential trade negotiations to get things moving. A Canada-Japan free trade agreement must be the next priority.

Canadians recognize how important Japan is to Canada’s economic prosperity. They know that
concluding trade negotiations quickly is vital to maintaining competitiveness in the Canadian
market and strengthening the Canadian economy.

Negotiations on a Canada-Japan EPA have been underway since 2012 and are set to resume this summer with a sixth round of talks (from July 28 – July 31). With the recent developments in the Canada-South Korea trade agreement and the significant progress Canada and the EU have made in their Comprehensive Economic and Trade Agreement, it’s time Canada completed its agreement with Japan so citizens and businesses in both countries can start enjoying the substantial economic benefits such a deal will bring.

This article was originally published on July 4, 2014 at iPolitics.ca

Higher sales trend continues in June

Sales of new light vehicles in Canada rose 2.2% in June over last year to 175,428 units. Passenger cars sales gained 3.4% to 77,552 units, while light trucks improved 1.3% to 97,876 units in June. Based on the monthly SAAR, sales in Canada are on trend to hit a new record high in 2014.

According to Dennis DesRosiers (President of DesRosiers Automotive Consultants),
“For the third June in a row light vehicle sales hit record levels for the month. Sales in June 2014 totalled 175,428 units, up 2.2 percent from June 2013. This also brought year to date sales up to 908,094 which is the earliest date on record for sales to hit the 900K mark.”

Japanese brand sales increased 8.5% in June on a combined basis to 57,960 units. Car sales jumped 13.7% in June to 32,654 units, while light truck deliveries advanced 2.6% to 25,306 units. Among individual member companies, Nissan Canada sales soared 27.3% in June to 11,320 units, with Mazda Canada recording a gain of 14.2% to 6,415 units. Up in single digit gains were Honda Canada (+8.1%) to 16,185 units; Subaru Canada (+8.0%) to 3,536 units and Toyota Canada (+2.1%) to 18,729 units. Mitsubishi Motor Sales Canada recorded a YOY decline of 11.5% to 1,775 units (although sales of passenger cars jumped 40.3% in June).

Jan – June YTD (1H 2014):

For the first half of 2014, Canadian light vehicle sales were up 2.8% to 908,094 units. Light truck sales rose 6.6% wholly accounting for the gain to 524,307 units, as car sales weakened 2.0% to 383,787 units compared to the same period in 2013.

JAMA Canada members’ sales altogether improved 7.9% through the first six months of 2014 to 306,205 units representing a market share of 33.7% up from 32.1% in 2013. Passenger car sales improved 5.7% to 164,515 units, while light truck sales advanced 10.5% to 141,690 units for all members combined.

Among individual members, Nissan Canada was the growth leader during the first half, as sales rose 27.4% to 56,101 units, followed by Subaru Canada whose sales climbed 17.8% to 20,334 units. The volume leader was Toyota Canada with sales of 100,635 units, up 3.6% over 2013. Honda Canada YTD sales rose 7.3% to 82,184 units. Mazda Canada sales edged up 1.0% to 36,299 units (driven by a 7.7% gain in light trucks). Mitsubishi Motor Sales Canada sales fell 5.0% in the first half to 10,652 units; however, car sales jumped 17.6% in the period.

Sales – June 2014

Source: Global Automakers of Canada / JAMA Canada members

Japanese brands buoyant as May sales set new record

Light vehicle sales in Canada set a new monthly record high in May at 195,571 units, a gain of 5.7% over May 2013 – representing a SAAR of almost 1.89 million units. Trucks continued to dominate with a 12.1% jump to 111,035 units, while car sales dipped 1.7% lower to 84,536 units.

Japanese brand sales altogether advanced 9.0% to 65,807 units. In fact, both car and truck sales were up about 9% in May.

Among JAMA Canada members: Nissan Canada was the growth leader again up 27.4% in May, followed by Subaru Canada with a gain of 22.8%, then Mazda Canada up 14.4%, Honda Canada up 10.7% and finally Toyota Canada with a sales gain of 1.0% in May.

Jan – May YTD:

Overall the light vehicle market in Canada rose 2.9% during the first five months of 2014 to 732,666 units. Light truck sales advanced 7.9% to 426,431 units (representing 58.2% of the market), while car sales declined 3.3% to 306,235 units.

Japanese brand vehicles were the growth leader, up 7.7% to 248,245 units – a market share of 33.9%, up from 32.4% in 2013. JAMA Canada members’ car sales rose 3.9% YTD to 131,861 units, while light truck deliveries jumped 12.4% to 116,384 units over the same period.

Nissan Canada and Subaru Canada were both ahead in double digit gains (up 27.4% and 20.1% respectively). Honda Canada and Toyota Canada recorded single digit growth YTD (up 7.1% and 3.9% respectively). Sales at Mazda Canada and Mitsubishi Motor Sales Canada were lower, down 1.5% and 3.5% respectively, although Mazda Canada truck sales rose 7.9% and Mitsubishi car sales jumped 13.5% compared to 2013.

Sales – May 2014

Source: Global Automakers of Canada / JAMA Canada members

Sales up in April

Light vehicle sales in April rose 4.0% over last year to 178,703 units, and 2.0% ahead of the previous sales record for April set in 2008. Truck demand continued to dominate as truck sales gained 6.7% to 101,034 units, compared to a 0.7% rise in car sales to 77,669 units in April.

As a group, sales of Japanese brand vehicles improved 7.8% over last April as deliveries of cars rose 6.9% to 32,680 units, while light truck sales gained 8.9% to 27,998 units.

Among JAMA Canada members: Nissan Canada was the growth leader (+29.8%) in April, followed by Subaru Canada (+17.5%) and Mazda Canada (+11.0%). Toyota Canada and Honda Canada both had modest gains (+2.9% and + 2.1% respectively), while Mitsubishi Motor Sales Canada’s results were down marginally (-0.6%) compared to April 2013.

Jan-Apr YTD:

Overall, the light vehicle market in Canada rose 1.9% in the first four months of 2014 to 537,095 units. Light truck sales gained 6.4% to 315,396 units (58.7% market share), while car sales retreated 3.9% to 221,699 units on softer demand.

Japanese brand sales for the YTD were up 7.2% as a group to 182,438 units, with car sales up 2.0% and truck sales up 13.5% over 2013. Japanese market share also improved YOY to 34.0% from 32.3% last year.

Growth leaders were Nissan Canada (+27.3%) and Subaru Canada (+19.2%), while the volume leaders had single digit gains – Toyota Canada (+5.0%) and Honda Canada (+5.8%) for the YTD. Results at Mitsubishi Motor Sales Canada were unchanged compared to 2013. 

Sales – April 2014

Source: Global Automakers of Canada / JAMA Canada members

Trucks lead sales increase in March

In Canada, new light duty motor vehicle sales were essentially flat in March, up just 0.2% to 157,060 units compared to March 2013. While results were mixed, demand for light trucks continued to be robust, as truck sales rose 5.1% to 90,851 units while passenger car sales fell 5.7% to 66,209 units during the month.

Japanese brand sales outperformed the market in March with a 4.2% gain overall to 54,946 units sold. Passenger car deliveries were unchanged at 29,208 units, while light truck sales jumped 9.3% to 25,738 units in March. Results were mixed among member companies: in positive territory were Nissan Canada (+23.7%), Subaru Canada (+11.5%), Toyota Canada (+6.8%) and Honda Canada (+5.5%).

Jan – Mar YTD:

For the first quarter of 2014, vehicle sales in Canada were up marginally 0.9% to 358,392 units. Results were split as light truck sales rose 6.3% to 214,362 units, while car sales fell 6.2% to 144,030 units.

JAMA Canada members combined sales rose 7.0% to 121,760 units in the 1Q. Strong demand for light trucks pushed sales up 15.9% to 59,738 units, while car sales declined 0.4% to 62,022 units in the same period. Also, with imports from Japan down noticeably, sales of models built in North America grew 13.9% to 84,863 units (almost 70% of total sales). Japanese brand market share in 1Q was 34.0%, up from 32.0% in the 1Q of 2013.

Sales – March 2014

Source: Global Automakers of Canada / JAMA Canada members

With the 5^th Round of Canada-Japan bilateral trade negotiations set to take place during the week of March 24 – 28, JAMA Canada is encouraged by the efforts of the Canadian and Japanese governments to pursue an Economic Partnership Agreement (EPA) and looks forward to a successful round of negotiations in Tokyo, Japan.

“Canada and Japan have a long history of harmonious relations as well as largely complementary economies, so there are tremendous benefits for both countries if a deal can be concluded expeditiously”, said Jerry Chenkin, Chairman of JAMA Canada.

“Now that Canada has an agreement in principle with Europe and a new trade deal with South Korea, it is critically important to complete the EPA with Japan not only for the economic benefits for both countries, but also to maintain a balanced and level playing field in the Canadian motor vehicle market”, added David Worts, Executive Director of JAMA Canada.

One third of Japanese vehicles sold in Canada are imported from Japan – these include some of the most technologically advanced vehicles offering safe, reliable and more environmentally friendly transportation that would benefit from eliminating Canada’s 6.1% import tariff.

 

JAMA Canada, the association representing Japanese automakers in Canada, congratulates the Government of Canada on signing the Canada-Korea Free Trade Agreement.

Commenting on the completion of the agreement, Jerry Chenkin, Chairman of JAMA Canada said: “The agreement is a gateway into the Asia-Pacific region and represents another step towards securing and strengthening Canada’s economic partnerships with countries in the region.
 
“With the successful conclusion of the agreement with Korea – an initiative supported by JAMA Canada and its members – we continue to encourage the Canadian government to turn its attention towards the swift completion of an economic partnership agreement with Japan.

“Trade agreements are critical to maintain competitiveness in the Canadian market and to ensuring an equitable and balanced playing field for those investing and doing business in Canada.”

Built on a strong legacy of trade liberalization in North America, Japanese automakers have been investing in Canada since the mid-1980s. Several Japanese automakers have established world-class assembly plants and more than 50 Japanese parts-related plants have been set up in Canada. In addition, a network of more than 1,250 dealerships in every province has created countless jobs in communities big and small. More than 68,000 Canadians are employed through the manufacture, sale, service, distribution, export or import of Japanese vehicles in Canada.

A key part of any trade agreement is a phasing out of tariffs. While two of every three Japanese brand vehicles are built in North America, one third are imported from Japan to meet the wide ranging transportation needs of Canadians. Currently, a 6.1 per cent tariff is imposed on these vehicles. With the expectation that automobiles from the EU and South Korea will enter Canada free of tariffs, a bilateral trade agreement with Japan is critical to maintaining equitable treatment.

The Canadian government has made great progress on its trade negotiations by concluding a trade agreement in principle with the European Union, and the imminent bilateral agreement with the Republic of Korea. With this momentum in pursuit of a broader trade agenda in Asia, we urge the government to ‘rev-up’ trade negotiations with Japan and the 12 countries in the Trans Pacific Partnership.  Expanding trade initiatives in Europe and Asia will spur economic growth through access to global markets and diversify liberalized trade beyond NAFTA.  

In a recent open letter to Prime Minister Harper, a large group of Canadian exporters called for the completion of an FTA with Korea. Clearly, Canadian industries are being disadvantaged by Korea’s trade deals with the US, Europe and Australia in the same way that Japanese automakers in Canada would be hurt if Canada were to sign deals with Europe and Korea, but not Japan.

While the auto industry in Canada continues to be highly trade-dependent, maintaining and growing the economic engine created by the Japanese auto industry in Canada requires the further liberalization of trade. The negotiation and ratification of agreements with the Europe Union, Korea, Japan and the TPP will create a level playing field, and ensure Canadian consumers continue to enjoy the full benefit of freer trade. More than ever, a globally competitive environment is crucial to ensure the long term viability and sustainability of the Canadian auto industry.

It’s also time to take the long history of harmonious relations between Canada and Japan to the next level. A bilateral trade agreement will create a multi-billion dollar gain for the Canadian economy, year on year.

Built on a strong legacy of trade liberalization in North America, Japanese automakers have been investing in Canada since the mid-1980s.  Several Japanese automakers have established world-class assembly plants and more than 50 Japanese parts-related plants have been set up on Canadian soil. As a result, Canada has been a net exporter of Japanese brand vehicles every year since 1993 with a cumulative net export of over 3 million vehicles. In addition, a network of more than 1,200 dealerships in every province has brought countless jobs in communities big and small. More than 68,000 Canadians are employed through the manufacture, sale, service, distribution, export or import of Japanese vehicles in Canada.

A key part of any trade agreement is a phasing out of tariffs. While two of every three Japanese brand vehicles are built in North America, one third are imported from Japan to meet the wide ranging transportation needs of Canadians. Currently, a 6.1 per cent tariff is imposed on these vehicles. With the expectation that automobiles from the EU and South Korea would be entering Canada free of tariffs, a bilateral trade agreement with Japan would be critical to maintain equitable treatment.

Canada has been involved in negotiating an FTA with Korea since 2004 and an economic partnership agreement with Japan since 2012. It’s time to complete these agreements and finish the job. Concluding trade negotiations swiftly is critical to maintain competitiveness in the Canadian market and to ensure an equitable and balanced playing field for those investing and doing business in Canada.

For decades, both Canada and Japan have been strong advocates of the multilateral process
including trade liberalization in the GATT and the WTO. However, with the ongoing problems facing the WTO Doha Round, the focus has shifted dramatically to bilateral and regional preferential trade negotiations. While these are necessary so as not to be left behind, FTAs or EPAs should be seen as stepping stones to the broader goal of global trade liberalization, not ends in themselves. Logically, countries that have similar preferential agreements in common with other trade partners should then seize the opportunity to build toward multilateral solutions. 

JAMA Canada, l’association qui représente les constructeurs d’automobiles japonais au Canada, a publié aujourd’hui une déclaration appuyant les efforts du gouvernement du Canada visant à conclure un accord de libre-échange avec la République de Corée – premier pas important vers la création et le renforcement de partenariats économiques dans la région Asie-Pacifique.

« Un commerce libre et ouvert avec des marchés prioritaires en Asie, surtout en Corée et au Japon, est vital pour l’intérêt national du Canada qui doit être concurrentiel sur la scène mondiale, créer des emplois et accroître sa prospérité », a déclaré Jerry Chenkin, président de JAMA Canada et président et chef de la direction de Honda Canada. « La conclusion d’un accord commercial avec la Corée permettrait également au Canada d’orienter toutes ses ressources vers la conclusion rapide d’un accord de partenariat économique avec le Japon. »

« La négociation fructueuse d’un accord de libre-échange avec la Corée compléterait l’accord de principe relativement à l’AECG Canada-UE annoncé l’automne dernier ainsi que l’accord de libre-échange actuellement négocié avec le Japon », a ajouté M. Chenkin. « JAMA Canada et ses membres appuient les efforts actuels du gouvernement pour s’assurer que les consommateurs canadiens aient un accès complet, équitable et libre aux véhicules fabriqués en Amérique du Nord, en Europe, en Corée et au Japon. »

JAMA Canada, the association representing Japanese automakers in Canada, has today issued a statement in support the Government of Canada’s efforts to complete a free trade deal with the Republic of Korea – an important first step towards securing and strengthening economic partnerships in the Asia-Pacific region.

“Free and open trade with priority markets in Asia, most notably Korea and Japan, is vital to Canada’s national interest to be globally competitive, create jobs and increase prosperity,” said Jerry Chenkin, Chairman of JAMA Canada and President and CEO of Honda Canada.  “The successful conclusion of a trade agreement with Korea would also allow Canada to direct its full resources towards the swift completion of the economic partnership agreement with Japan.”

“The successful negotiation of a free trade agreement with Korea would complement and supplement the Canada-EU CETA agreement-in-principle announced last fall as well as the free trade agreement currently being negotiated with Japan,” added Mr. Chenkin.  “JAMA Canada and its members support the government’s ongoing efforts to ensure that Canadian consumers have full, fair and free access to vehicles made in North America, Europe, Korea and Japan.”

Japanese sales up in January

Overall light vehicle sales in Canada were basically flat in January, with a small gain of 0.3% to 95,639 units. However, truck sales were up 4.7% to 58,932 units, while car sales fell 5.9% to 36,707 units.

Japanese brand sales jumped 12.0% in January to 31,936 units on strong demand for trucks (up 27.4%) while car sales were off slightly. As in December, truck sales exceeded car sales for the second consecutive month. Nissan Canada was the growth leader (+37.6%), followed by Subaru Canada (+27.9%), Toyota Canada (+10.6%), Honda Canada (+7.1%) and Mazda Canada (+0.1%).

Note: Suzuki has officially stopped selling vehicles as of December 2013.

Sales – January 2014

Source: Global Automakers of Canada / JAMA Canada members

Strong December sets record annual sales for 2013

New vehicle sales increased 3.8% in December to 113,036 units, a respectable result given the inclement weather in the last week of the month. As in most months of the past year, truck sales were particularly strong up 14.4% in December to 69,682 units while car sales slid 9.7% to 43,354 units.

As a group, Japanese brand sales rose 7.0% in December to 41,440 units, thereby outperforming the overall market. Of particular note, light trucks outsold passenger cars for the very first time in December as truck sales soared 30.0% to 21,543 units, while passenger car sales fell 10.2% to 19,897 units. Among individual member companies: Nissan Canada and Mazda Canada were the growth leaders in December with unit gains of 40.5% and 28.0% respectively. Toyota Canada and Honda Canada recorded modest gains overall, up 1.2% and 0.8% respectively – but truck sales for Honda Canada jumped 57.8% and 11.2% for Toyota Canada in December. Truck sales also rose for both Subaru Canada (+16.8%) and Suzuki Canada (+3.8%) in December.

Jan-Dec 2013 YTD:

Rising demand, new models and continuing incentives drove light vehicle sales to a new Canadian record in 2013 – up 4.0% from 2012 to 1,743, 112 units, compared to the former peak of 1,703,246 units sold in 2002. In 2013, light trucks were the prime mover in setting the new record level — truck sales rose 6.9% in 2013 to 978,730 units, while passenger car sales improved marginally up 0.6% to 764,382 units. However in 2002, passenger car sales were leading with 934,471 units, and light truck sales were 768,775 units.

In 2013, JAMA Canada member companies combined sales totaled 583,941 units, a gain of 6.0% over 2012. This improved Japanese brand share from 32.9% in 2012 to 33.5% in 2013. Three members established new sales records in 2013: Nissan Canada (91,551 units, +11.4%), Subaru Canada (36,760 units, +18.6%), and Mitsubishi Motor Sales Canada (21,104 units, +7.3%). Among other members: Honda Canada sales rose 10.4% in 2013 to 164,236 units, Toyota Canada was the volume leader with sales of 195,360 units, up 1.7% over 2012; and Mazda Canada sales were up 0.3% to 71,859 units.

Sales – December 2013

Source: Global Automakers of Canada / JAMA Canada members