The combination of four doors and a bit of a luxury in a small package still resonates with many Canadian new car buyers Based on the final sales numbers in 2021, Canada’s compact luxury cars are becoming less popular. But that doesn’t mean luxury auto brands have given up on the segment.

Whether it’s North America, Asia or Europe, cars in the entry-level luxury segment come from across the world. It’s a segment that demands modern offerings with upscale details and the latest in technology in a package larger than sedans like the Mercedes-Benz A-Class and BMW 2 Series, but smaller than mid-size luxury offerings like the Audi A6 and Lexus ES. 

To get caught up on the class, here were the 10 most popular new compact luxury cars in Canada in 2021*.

With sales up 8.6% Year over Year (YoY), the CT5 sedan is one of the most affordable in its class. The rear- or all-wheel drive Caddy offers a lot of external visual flash and extra interior space compared to rivals. Suppose you have extra room in your budget. 

In that case, the CT5-V and the stunning CT5-V Blackwing (the revival of the iconic CTS-V, with a 668-horsepower supercharged V-8, making it the most powerful production Cadillac in history) offer more excitement. Available Super Cruise makes the CT5 the only car in its class with hands-free highway driving.

 

The Q50 sedan makes its case with a powerful turbocharged V-6 gas engine (these 6-cylinders from Infiniti/Nissan are also excellent examples of their kind), AWD, and plenty of standard features. Last updated for 2016, the Q50’s exterior is managing to remain arguably agreeable. 

But it’s fighting a battle against time and other cars, with YoY sales down 3.8%. Most rivals have 4-cylinder engines at their entry levels, generally about 40 horsepower shy of what the Q50 enjoys.

Despite sales up 20.6% in 2021, Hyundai’s Genesis luxury brand has significantly refreshed its G70 for 2022. With standard AWD and a choice of a turbo 4-cylinder engine or a V-6, the G70 has been refreshed with new exterior styling. Inside, the Genesis sedan gets a large 10.25-inch navigation screen that commands attention at the center console’s top. A new 8-inch digital instrument cluster complements it, plus nine new or updated standard safety features. 

If we wanted to be pedantic, we’d say the Stinger GT is not a sedan (with a trunk) but a hatchback. That’s fine with us, though. It’s just great that there’s a relatively affordable car with driver appeal that makes a credible alternative to desirable rides like the Audi A5 Sportback or BMW 4 Series Gran Coupe. With YoY sales up 9.2% for 2021, the Stinger GT gets more power from its turbo-6-cylinder and a sharper exterior look. The rear-drive-biased Kia handles sweetly—especially for the price.

Although the S60 sedan is often overlooked, sales in Canada last year were up 7.2%, and for many good reasons. This Volvo uses unique Scandinavian styling. It has excellent safety scores that uphold the brand’s reputation. It’s also fuel-efficient, especially with the available Recharge plug-in hybrid powertrain. 

In addition, a big update for 2022 is a new mild-hybrid B5 powertrain, available with front- or AWD. It’s a turbo 4-cylinder gas engine with a 48-volt electrical system helping to make it more efficient than the T5 powertrain in the 2021 model.

After a major revamp in 2020, this generation of A4—launched in 2017—remains competitive, despite sales off 32.6% last year. Many qualities of the A4 are amplified in the S4 sports sedan—a great package of extra equipment as well as more power. 

And if you don’t want an SUV, there’s the A4 Allroad wagon. Any A4 can engage buyers who understand and appreciate the joys of driving a well-balanced car with a low center of gravity while packing an abundance of style, tech, refinement, and one of the best AWD systems available. 

Do you like the idea of a luxury sedan that’s fun to drive but also safe (RWD and AWD are available) and reliable? Few cars can balance luxury, driving engagement, and value quite like the IS sedan. Canadians seem to agree, with YoY sales up 72.5% in 2021. The big news for 2022 is the Lexus IS 500 F Sport, powered by a mighty V-8 engine. It also adds a sporty appearance package that leaves no room for doubt in this RWD car’s intentions; going fast in style and luxury.

Whoever buys a 2022 TLX will have a luxury car with a driver’s edge. This is the second generation of TLX, which was all-new last year but saw a 9.4% YoY decline in sales. Like the Cadillac CT5, the TLX is closer in size to, say, a Mercedes-Benz E-Class than a C-Class. Like other Acura vehicles, the TLX has a lot of standard equipment, including AWD and a turbo 4-cylinder gas engine, while the new Type S gets a turbo V-6. 

The current 2022 C-Class sedan, coupe, cabriolet and wagon versions recorded 24.2% YoY sales drop in 2021. Yet, the compact class is essential to Mercedes-Benz. If you include the Mercedes 190 predecessor, the German automaker has sold 10.5 million C-Class models since 1982. 

Later this year, comes the 2023 C-Class, an all-new version that has grown in size, style, and luxury. This brand-new C-Class also shares lots of modern technology with its larger and considerably more expensive stablemate, the S-Class.

With annual sales up 12.3%, the 3 Series was Canada’s most popular luxury compact car in 2021. This seventh generation, which debuted for 2019, is terrific to drive, plus roomy and practical. The compact luxury car segment has many appealing offerings. 

But the 3 Series has always had a driver’s edge, and part of this is how the automaker’s engines deliver their power. Each unit is a winner in the 2022 3 Series, from the 4-cylinder in the 330i to the 330e plug-in hybrid to the explosive 473-hp M3.