Weak demand for new passenger cars in June caused new motor vehicle sales to fall 1.9%, Statistics Canada reported today. In all, 130,245 new vehicles were purchased in June, down 2,493 units from May.

Although sales dropped for the second straight month, StatsCan said preliminary auto industry figures show a gain of approximately 2% for July.

June’s drop in sales occurred despite the purchasing incentives for new cars already in place and others newly introduced by automakers.

The declines registered in June and May followed a series of increases that began in January 2004 and peaked in April, StatsCan said

StatsCan said the bulk of the decline came in passenger car sales, while truck sales remained unchanged.

The number of new passenger cars sold stood at 67,468, down 3.6% from May, for a second consecutive monthly decline. The decrease is mainly attributable to North American-built cars, which accounted for more than two-thirds of the drop, StatsCan said.

In June, 62,778 new trucks were sold. This was almost the same level as in May, a month when sales were down.

Despite the declines observed in June and May, StatsCan second quarter sales were higher than in the first quarter.

The number of new motor vehicles sold in the second quarter of 2004 jumped 4.6% compared with the previous quarter, when a modest 0.3% gain was recorded.