Toyota and Honda saw their Canadian sales fall by more than 20 per cent in March compared to the same month last year as the weak economy continued to hit vehicle sales.

Honda Canada Inc. said Wednesday that March sales for its Honda and Acura brands fell 23 per cent compared with the same month last year.

The company, which on Tuesday announced more down time for its North American manufacturing plants, said it sold 12,570 units in March.

Honda sales were down 20 per cent from last year, while Acura sales slid 42 per cent year-over-year to 1,211 units.

"Our March results, although down from last year's record results, are only off by 13 per cent over the last five-year sales average," said Jerry Chenkin, executive vice-president at Honda Canada.

"We are encouraged to see that showroom traffic at our dealerships in March was up over the previous months, and that consumer confidence is showing a gradual upswing."

Toyota Canada Inc. said sales of its Toyota and Lexus cars, SUVs and trucks totalled 15,901 in March, off 23 per cent from March 2008. While Lexus hit a new record in March with 1,363 models sold, up 21 per cent, overall Toyota sales were down 25.5 per cent from the previous year.

Nissan Canada Inc. reported sales of 7,605 Nissan and Infiniti vehicles in March, a decrease of 8.8 per cent from the same month last year.

While Honda and Nissan sales were down, some manufacturers reported higher sales. Kia Canada Inc. said its March 2009 sales of 3,555 units were a 12.6 per cent increase over its March 2008 sales.

Audi Canada, meanwhile, said it enjoyed its second-best March on record. The company said it sold 979 units, up 25.3 per cent from the same month in 2008.

Canadian auto sector analyst Dennis DesRosiers said March sales were better than earlier months.

"The market was down by 15 per cent in March and although negative this is a significant improvement from the last few months when sales were down in the mid-20 per cent range," he said.

Among the "Detroit Three," Canadian sales at GM in March were down 17.3 per cent year-over-year, while Ford was off 15.1 per cent and Chrysler sales fell by 26.6 per cent, DesRosiers said.

U.S. sales slide at Ford

In the United States, Ford Motor Co. saw a 41 per cent sales drop for March. The Dearborn, Mich., company said it sold 131,000 light vehicles in the month, down from 222,000 in March 2008.

In response to weak sales, soft consumer confidence and rising unemployment in the United States, Ford said Monday that it will pay make monthly vehicle payments for customers — to a maximum of $700 US — if they lose their jobs.