The automaker said it sold 27,940 vehicles last month, up 2.2 per cent from 27,344 in July last year, to post its best July since 1979.
The gains were helped by sales of the Explorer and F-Series trucks that gained 18 per cent and 20 per cent respectively. Sales of crossover utility vehicles Edge and Flex also jumped 44 per cent and 72 per cent.
"It is encouraging to see continued strength in the industry and we are certainly very proud to be the best selling automotive brand in Canada," said Dianne Craig, president and CEO, Ford of Canada.
Ford wasn't the only automaker to post a record in July.
Chrysler Canada also posted its best July sales as it reported a three-per-cent increase from a year ago.
The company said it sold 24,162 vehicles in the month, up from 23,385 a year ago, helped by strong sales of its Grand Caravan, Ram, and Wrangler.
The Dodge Grand Caravan saw its sales increase 20 per cent last month to 5,222, up from 4,338 a year ago.
Meanwhile, the Japanese automakers continued to post strong gains compared with a year ago, when sales were hurt by the earthquake and tsunami in Japan that crippled production.
Toyota Canada Inc. reported sales of 15,819 Toyota, Lexus and Scion passenger cars, SUVs and trucks in July, up 30 per cent from a year ago.
Toyota brand sales amounted to 14,028, up 30.3 per cent from a year ago, while sales of the Lexus luxury brand totalled 1,107, up 18.3 per cent. Scion sold 684 cars, up 47.4 per cent from a year ago and a new July record for the brand.
Combined sales by Honda and Acura in July totalled 11,184 vehicles, up 27 per cent from a year ago, with gains helped by record sales of Honda's CR-V sport utility vehicle and the Acura RDX and TL.
Honda sales amounted to 9,604 units, up 26 per cent, while Acura sales totalled 1,580, up 36 per cent.
However, Nissan Canada Inc. reported sharp drop in July sales to 5,316, down 29.3 per cent from a year ago when the company sold 7,523.
Nissan division sales totalled 4,635 for the month, down 33.3 per cent, while sales of its Infiniti luxury brand were up 19.7 per cent from a year ago at 681.
South Korean automaker Hyundai posted a record for July and sold 12,850 units, up 0.8 per cent over the same month last year.
Kia sold 7,683 vehicles for the month, up 20.4 per cent compared with July 2011.
In the U.S., General Motors and Ford lost ground to Japanese automakers last month as their rivals made a strong comeback from last year's earthquake.
GM's July sales fell six per cent from a year earlier, while Ford's slipped four per cent. By contrast, Honda sales leaped 45 per cent while Toyota posted a 26-per cent gain. Chrysler also did well, notching its best July in five years.
Total U.S. auto sales are expected to rise 11 per cent when the final numbers come in Wednesday, boosted by summer clearance deals and low-cost financing. The Japanese are also seeing the biggest sales gains south of the border from a year earlier, when they couldn't supply enough models to U.S showrooms after production was hobbled by a March earthquake.