U.S. auto sales rise to continue: Scotiabank
U.S. auto sales will continue to rise for the remainder of this year and into 2017, according to a new forecast from Scotiabank that contradicts the increasingly popular view that sales have plateaued.
Several indicators, including ongoing job growth, vehicle affordability and a strong automotive finance market should continue to drive U.S. auto sales, said Carlos Gomes, senior economist and auto industry specialist at Scotiabank.
Demand for crossovers and pickup trucks to replace aging sedans is also driving U.S. sales, Gomes wrote in his latest global auto report, released Tuesday.
“This trend will continue to lift sales as more than 40 per cent of the U.S. fleet is at least 13 years old,” Gomes wrote. “Furthermore, there are still nearly 50 million vehicles on the road in the United States that were built prior to the new millennium.”
Globally, vehicle sales have been stronger than expected this year, rising five per cent through July. Double-digit gains in China and a seven per cent increase in Western Europe led the way, Gomes said.
In Canada, auto sales rose in seven of the 10 provinces through July, led by increases of nine per cent in Ontario and seven per cent in B.C. In Alberta, which had double-digit declines in sales earlier this year, volumes appear to be stabilizing.