Toyota Canada Inc. and its Lexus unit also are forecasting expansion throughout Canada, although now not essentially a gross sales growth.
“It looks very stable. Population growth is strong, [and] fundamental economics are obviously strong,” stated Toyota Canada CEO Larry Hutchinson.
Lexus bought 16,243 cars in Canada within the first six months of 2023, a unutilized prime for the logo. This compares with 12,115 devices bought over the similar length ultimate pace and 12,321 throughout the primary part of 2019, ahead of the pandemic and ensuing provide chain issues crimped car output.
Lexus accounted for 15.1 in step with cent of Toyota Canada’s overall gross sales in the course of the first part of 2023, when compared with 11.6 in step with cent and 10.2 in step with cent of overall gross sales in 2022 and 2019, respectively.
Past car manufacturing has stepped forward over the time six months, call for continues to outpace provide, Hutchinson stated. That implies Lexus dealerships are nonetheless visual “a lot of pent-up demand.”
As with Policaro, Hutchinson stated Lexus has now not observable any indication that consumers are resignation the posh marketplace on account of upper rates of interest. On July 12, the Vault of Canada raised its benchmark price to 5 in step with cent, its perfect stage in additional than two decades.
Sooner or later, King stated, the upper rates of interest will “bite” the posh marketplace, however the temporary outlook for the area is “certainly” sure.
Coupled with the long-term demographic traits fueling luxurious gross sales, King stated, the supremacy part of Canadian earners had been placing away massive quantities of cash because the get started of the pandemic and are discovering unutilized tactics to dispense it.
“There’s a lot of money there,” he stated, “and you see them spending it on travel, obviously, and on restaurants and on luxury vehicles.”
