Canadian auto sales on track for another record

TORONTO Vehicle sales in Canada are on pace to break last year’s annual record, increasing by 6.9 per cent from last year to an August record of 183,945 units sold, as auto sales continue to rise around the world despite concerns that demand has peaked.

According to a report Tuesday by the Global Automakers of Canada, which represents 15 industry manufacturers, more than 1.4 million new vehicles have been sold this year, 5.3 per cent more than last year’s record-breaking pace. Demand for light truck and SUV continued to bolster sales, with yearto-date sales increasing by 10 per cent and five per cent respectively, offsetting declining passenger car sales, which fell 0.5 per cent on a year-to-date basis.

“Unless we hit some unexpected economic turbulence, it seems reasonable that Canada will achieve another new sales record in 2017,” GAC president David Adams.

Detroit-based General Motors led the way in sales, surpassing Ford for the first time in five months. GM said sales jumped by 28.5 per cent in August when compared to last year, the company’s best results for that month since 2008. GM Canada sold 28,981 vehicles in August, bringing the year-to-date total sales to 205,329, an 18-per-cent increase from last year.

The firm’s GMC and Cadillac brands reported strong results, with record-high sales for both in August. GMC sales rose by 54.7 per cent from last year, with year-todate sales up by 22.9 per cent, while Cadillac’s sales rose by 19.3 per cent from last year, with year-to-date sales up by 19.3 per cent.

Ford sold 27,296 vehicles last month, a six-per-cent dip from 2016, but it has sold 215,224 vehicles in 2017, 3.2 per cent more than the same time last year. FCA saw weaker August sales, dropping 9.2 per cent from last year to 19,648.

While sales in the U.S. continue to struggle — August sales of new cars and trucks fell two per cent, The Associated Press reported, marking the eighth straight month of decline — Canada has seen sales increase as the economy continues to grow at a better-than-anticipated pace.

Global auto sales are also poised to set an eighth-consecutive annual record, according to the Scotiabank Global Auto Report released last week. Sales in Canada are projected to reach two million.

“Declines in global car sales have historically only occurred during economic downturns ... Outside of those years, global auto sales have consistently moved higher,” Scotiabank economist Carlos Gomes wrote in the report.