|By Marketwired .||
|June 27, 2014 07:00 AM EDT||
TORONTO, ON--(Marketwired - June 27, 2014) - Passenger vehicle sales in Canada soared to a record high of 1.89 million units annualized in May, surpassing the previous peak of 1.88 million set in January 2008, according to the Scotiabank Global Auto Report released today. Global car purchases re-accelerated in May, climbing 4.5% above a year earlier -- a significant upturn from only a 1% gain in April.
"As in previous months, crossover utility vehicles led the way in Canada, surging 17% above a year earlier and lifting overall light truck sales 12% above a year ago," said Carlos Gomes, Scotiabank's Senior Economist and Auto Industry Specialist. "Given the stronger-than-expected performance of the last two months and the recent increase in industry incentives -- including the return of 'employee pricing' -- we have raised our full-year 2014 forecast by 10,000 units to 1.77 million units."
Other highlights in the report include:
- Global car sales improvement was broad-based, with the pace quickening in most regions. China and the United States led the way with double-digit year-over-year gains, but volumes also picked up across Asia and Western Europe alongside improving economic conditions;
- Car sales and production in Western Europe are in the early stages of a cyclical recovery, with purchases set to increase this year from a sixteen-year low in 2013. The labour market -- the key driver of car sales -- has gained momentum across Western Europe, enabling households to consider replacing their aging vehicles; and
- Strengthening demand is leading to an upswing in vehicle production across Western Europe. During the first five months of 2014, vehicle assemblies climbed 6% above a year earlier, and new orders for vehicles assembled in Germany and Spain -- the two largest vehicle manufacturers in Western Europe -- continue to move higher.
Read the full Scotiabank Global Auto Report online at: http://www.scotiabank.com/ca/en/0,,3112,00.html.
Scotiabank provides clients with in-depth research into the factors shaping the outlook for Canada and the global economy, including macroeconomic developments, currency and capital market trends, commodity and industry performance, as well as monetary, fiscal and public policy issues.
Scotiabank is a leading financial services provider in over 55 countries and Canada's most international bank. Through our team of more than 86,000 employees, Scotiabank and its affiliates offer a broad range of products and services, including personal and commercial banking, wealth management, corporate and investment banking to over 21 million customers. With assets of $792 billion (as at April 30, 2014), Scotiabank trades on the Toronto (TSX: BNS) and New York (NYSE: BNS) Exchanges. Scotiabank distributes the Bank's media releases using Marketwired. For more information please visit www.scotiabank.com.