Once a “very, very small” portion of Canadian vehicle sales, the luxury market has been “growing consistently” over the past 20 years, said Andrew King, managing partner at DesRosiers Automotive Consultants Inc.
In an indication of how far luxury sales have come over the past two decades, the Brampton, Ont.-based Policaro Group broke ground July 14 on a new Lexus dealership to replace a nearby store that had outgrown its footprint. “It looks very stable. Population growth is strong, [and] fundamental economics are obviously strong,” said Toyota Canada CEO Larry Hutchinson.
While vehicle production has improved over the past six months, demand continues to outpace supply, Hutchinson said. That means Lexus dealerships are still seeing “a lot of pent-up demand.”