Sales of Subcompact Vehicles Double in the Second Quarter of 2025

Canadians are on the hunt for affordable vehicles in 2025. Sales reports from the first half of the year show that deliveries of economy vehicles have increased significantly over 2024.

After years of contraction, the subcompact segment grew by 94.5 per cent between April and June, according to DesRosiers Automotive Consultants. Between January and June, sales were up 50.5 per cent, though overall sales remained small.

Nissan, for example, benefitted from this trend. The Japanese brand sold 1,200 Versas in Q2 2025, up from just 632 during the same period a year earlier. The Kicks has also been a success for the brand, which sold 5,658 examples of the new, second-generation model between April and June, in addition to 4,953 examples of the carried over but rebadged Kicks Play. The total sales of both models is a massive increase over last year's Kicks Play (which was then simply known as the Kicks) of which only 6,425 units sold. In fact, sales of the two Kicks were higher between April and June 2925 than sales of the Kicks across the first six months of 2024.

Brands like Hyundai were also buoyed by this trend with sales of affordable models like the subcompact Venue and the compact Elantra growing this year. According to the brand’s May sales report, both models saw an increase in sales of over 30 per cent from last year. Meanwhile, Mazda3 sales follow a similar trend as other affordable cars, and sales of the compact car saw a 63 per cent in year over year increase.

The trend is also pushing sales of small electric vehicles (EVs). Fiat saw a significant increase in sales of the 500e, the cheapest electric car currently on sale in Canada. Despite mixed reviews and a small battery, the 500e has seen a massive sales increase from 272 units in 2024, to 703 this year, which equates to a 158 per cent increase year over year.

This data is only the latest evidence that Canadians are focused on affordability when it comes time to buy a vehicle. Despite that, it’s getting harder to find cheap new vehicles in dealerships, leaving consumers with few options.