Annual light-vehicle scrappage rates (removal from service) in Canada declined between 2015 and 2025. This decrease occurred despite the unprecedented growth in the number of vehicles 15 years and older and record-high new-vehicle sales during that period.

Lower scrappage rates increased Canada’s Vehicles in Operation (VIO) by retaining cars and light trucks on the road that would otherwise have been scrapped. These un-scrapped vehicles accounted for a significant portion of the total VIO gain during these years.

North American nameplate vehicles historically constituted the majority of scrapped vehicles. The decline in scrappage consequently slowed the reduction of their share in the total VIO, despite the growth of foreign brands in new-vehicle sales.

The low scrappage rate led to a surge in the number of vehicles 15 years and older on the road. These vehicles, almost all Internal Combustion Engine (ICE) models, are less likely to be “totalled” in minor accidents and require more maintenance products and services per kilometre than newer models. This trend is highly favourable for the Canadian aftermarket.

Text credit : Lang Marketing 

Picture credit : ADOBE STOCK