Vehicle sales slumped 11 per cent last month from year-earlier levels, sending the industry back into negative territory after a strong April appeared to signal a turnaround.

It's the third double-digit, year-over-year decline in five months this year and pushed sales for all of 2004 down 5.2 per cent. Sales dropped to 162,472 in May from 182,572 in May, 2003 -- with minor companies Land Rover and Jaguar still to report -- resulting in the worst May performance since 1999.

"I find it a bit surprising," said Richard Cooper, executive director of the Canadian operations of consulting firm J.D. Power and Associates. "Things seem to be getting on a more even footing from an economic point of view."

Just three auto makers posted gains in the month -- BMW Canada Inc., with its best month on record -- Mazda Canada Inc. and Suzuki Canada Inc.

Asian-based companies led the decline with Honda Canada Inc. sales down 22 per cent and Hyundai Auto Canada Inc. sales falling 26 per cent.

Sales also slid for the Canadian units of the Detroit-based auto makers, with Ford Motor Co. of Canada Ltd. posting the largest decline.

Ford's sales slumped 17 per cent to 23,726 cars, trucks, minivans and sport utility vehicles from 28,460 a year earlier.

General Motors of Canada Ltd. experienced a 12-per-cent slide.

DaimlerChrysler Canada Inc. had the best month of the three with a 3-per-cent dip.

Sales also fell for Toyota Canada Inc., which had bucked the downtrend all year.

Nonetheless, its market share reached 12 per cent for the first time in the company's history.

Auto makers appeared to scale back rebates and other incentives in May and consumers are probably signalling that such enticements are necessary, Mr. Cooper said. The deals include interest-free loans, subsidized loan rates and thousands of dollars in cash rebates on some models.