Despite the incentives offered by the automobile dealers, new motor vehicle sale fell in Canada in September 2006.  The 4.2% decline in new car sales in September followed healthy sales in July and August.  Statistics Canada expects the sales to fall by another 2% in October.

The car sales data for September offers some interesting insights.  The overall decline is driven by the lull in the demand for SUVs, vans,  and trucks.  Furthermore, automobiles manufactured or assembled in North America in fact saw a modest increase of 1.4%, whereas the overseas manufacturers suffered a decline of 1.7%.

Lastly, while Alberta is undergoing a housing boom lately, the same is not true for the new car sales.  The sale of new vehicles declined by 5.4% in Alberta.  Neighbouring British Columbia, on the other hand, saw a modest 0.1% increase.