07:43 AM EDT, 09/05/2025 (MT Newswires) -- Canadian new vehicle sales fell 2.9% in August from a year earlier to about 160,000 units, or 1.76 million annualized, Bank of Montreal (BMO) said.

That marked the weakest month this year and suggests the market could settle below its pre-pandemic pace if tariffs remain in place.

US light vehicle sales held up better in August, rising 6.9% year over year to an annualized 16.4 million units, the bank said. BMO noted the resilience may be temporary as buyers take advantage of Inflation Reduction Act tax credits for electric vehicles, which expire Sept. 30.

EVs made up an estimated 12.8% of August sales, an all-time high. BMO said September could see another strong month for US sales before higher prices weigh on volumes, similar to the decline already seen in Canada.