2023/12/08

New Economic Report Underlines New Car Dealers' Vital Role in Canada's Economy


CADA - 
The Canadian Auto Dealers Association (CADA) published its highly anticipated 2023 Economic Impact Report. This groundbreaking study, developed in collaboration with MNP, offers a comprehensive portrait of the substantial economic contributions made by auto retailers across the country.

This new data will allow decision makers to have a better understanding of how integral auto dealers are to local communities and regional economies. As the automotive industry is going through major structural changes, better information sharing is key in ensuring that policy objectives are well aligned with what is being observed, on the field, by auto retailers.

From job creation to economic growth and tax revenue generation, this report showcases the vital role played by new car dealers in shaping Canada's current and future economic landscape.

Key Findings from the National Report Include:

  • Canadian automobile dealers sold 1,488,645 new vehicles.
  • Generated over $28 billion of Canada's GDP.
  • Contributed $6.3 billion in tax revenue.
  • Recorded total revenues of $151.5 billion of which 54 percent was attributable to the sale of new vehicles and the remainder were attributable to the sale of parts, accessories, used vehicles and maintenance services.
  • Directly employed 167,790 people, 56 percent of whom were in jobs requiring a post-secondary credential, professional certification or significant experience.

In addition to the national release, CADA strongly encourages individuals to explore the Economic Impact Reports simultaneously published by the provincial auto dealer associations. These provincially focused reports offer a nuanced perspective on the regional contributions of auto retailers, highlighting the diverse and substantial economic benefits they bring to communities across the nation. Commenting on the importance of the provincial reports, Tim Reuss, President and CEO for the CADA, emphasized:

"The data specific to each province is invaluable, especially when auto dealers engage with their regional and provincial politicians. These reports will serve as crucial tools for effective advocacy, enabling the industry to communicate its significance to local economies."

By delving into both the national and provincial reports, stakeholders, policymakers, and the public can gain a comprehensive understanding of the vital role played by the auto retail industry in Canada's economic prosperity.

CADA and MNP remain committed to fostering transparency and understanding of the economic impact of new car dealers. The reports, accessible through this website, aim to serve as valuable resources for informed decision-making and policy development.