Canadian auto dealers say they expect their positive sales momentum to continue in 2011, despite a 4% dip in overall sales in February compared to a year ago.

Michael Hatch, Canadian Automobile Dealers Association chief economist, said Friday that Canadians have been putting off new car purchases longer than usual because of the recession.

The need to replace those vehicles, combined with a plethora of new products, cheaper financing and prices, and higher pump prices will see an estimated 1.6 million vehicles sold this year, bringing sales back to the industry average of the past decade, Mr. Hatch said.

"Not withstanding February's less-than-stellar sales, we should see solid growth in demand this year," he said on a conference call, while noting consumer confidence and high levels of personal debt will slow the sales growth this year. "There will always be headwind, but as of today, the tailwinds have the upper hand," Mr. Hatch said.