Canadians keen on fuel-efficient vehicles

Not only are they snapping up more compact and sub-compact models, such as the Mazda 3 and the Hyundai Accent, but new sales data for October show that intermediate-sized favourites the Toyota Camry and the Honda Accord have fallen off the top sellers list.

While both of those industry giants were still among the Top 10 bestselling cars in July, by October both had been bumped from the list by two compact models -- the Volkswagon Jetta and the Ford Focus.

That left all 10 spots filled by compacts or subcompact models, according to figures compiled by Canadian auto industry consultant Dennis DesRosiers.

"Even with gas prices coming down to earth, small, entry-level vehicles continue to sell well, with sales up 6.4 per cent in October and up 9.6 per cent year-to-date," DesRosiers said in his latest automotive industry report.

"Subcompact and compact cars and compact SUVs are all up solidly this past month (October) as consumers appear unwilling to move to less fuel-efficient products, even with lower gas prices."

DesRosiers' report also shows that while new-vehicle sales have been plunging in the United States and parts of Canada, that hasn't been the case in Manitoba.

It was one of seven provinces to record a year-over-year increase in new vehicle sales in October -- 3,564 units compared with 3,516 in October 2007.

That's an increase of 48 units, or 1.4 per cent, and it left new-vehicle sales for the year running 4.3 per cent ahead of last year's pace after the first 10 months -- 39,917 units compared with 38,253.

Manitoba Motor Dealers Association president Bruce Giesbrecht said he's not surprised that new cars and trucks continue to sell well in Manitoba.

"I think there are two reasons -- the fuel efficiency and the prices," he said in an interview Monday.

"It's cheaper to buy a vehicle now than it was 11 years ago."

Concern for the environment is also playing a role, according to Ashok Dilawri, president of The Dilawri Group, with five new-vehicle dealerships in Winnipeg.

"People have become a lot more green-conscious in the last six months," Dilawri said, adding his dealerships can't keep up with the demand for environmentally-friendly hybrids such as the Toyota Prius and the Honda Civic.

Giesbrecht said most Manitoba dealers he's talked to are continuing to hold their own in spite of all the economic uncertainty, and he's hopeful that trend will continue through to the end of the year.

The DesRosiers report shows Canadians' thirst for fuel-efficient vehicles isn't limited to just the new-car market. October's Top 10 list of bestselling light trucks, which includes trucks, vans and sport utility vehicles, also included three compact SUVs -- the Ford Escape, the Toyota Rav4 and the Honda CR-V -- and a small pick-up truck -- the Ford Ranger.

And that trend isn't going to change, DesRosier said, even in the face of further gas-price declines and generous buyer-incentive offers.

"You could put $15,000 in the boot (trunk) of a gas-guzzler and Canadians still wouldn't buy it," he said.

murray.mcneill@freepress.mb.ca

Compacts shuffle

Here is comparison of Canada's Top 10 best selling cars and trucks for July and October:

July 2008 October 2008

CARS

1. Honda Civic 1. Toyota Corolla

2. Toyota Corolla 2. Honda Civic

3. Mazda 3 3. Mazda 3

4. Toyota Yaris 4. Chevrolet Cobalt

5. Chevrolet Cobalt 5. Toyota Yaris

6. Hyundai Accent 6. Toyota Matrix

7. Toyota Camry 7. Hyundai Accent

8. Toyota Matrix 8. Pontiac G5

9. Pontiac G5 9. Volkswagon Jetta

10. Honda Accord 10. Ford Focus

TRUCKS

1. Ford F-Series 1. Ford F-Series

2. Dodge Ram 2. Dodge Ram

3. Chevrolet Silverado 3. Chevrolet Silverado

4. GMC Sierra 4. GMC Sierra

5. Dodge Caravan 5. Dodge Caravan

6. Ford Escape 6. Ford Escape

7. Ford Ranger 7. Toyota Rav4

8. Toyota Rav4 8. Ford Ranger

9. Honda CR-V 9. Honda CR-V

10. Pontiac Montana SV6 10. Hyundai Sante Fe

-- Source: DesRosiers Automotive Group

Republished from the Winnipeg Free Press print edition December 2, 2008 B4