DRIVING HIGHER
Search for fuel efficiency boosts auto sales.
Higher fuel prices continued to drive consumers to more fuel-efficient vehicles in March, helping push total sales in Canada to near-record highs.
While the overall pace of sales growth slowed to 3% in March compared to doubledigit gains in the first two months of the year, newvehicle purchases hit their second-highest level on record for the month — slightly lower than their peak in 1988, said Carlos Gomes, Bank of Nova Scotia’s senior economist.
He noted the strong showing kept auto sales above 1.7 million units for the third consecutive month at a seasonally adjusted annualized rate.
Auto sales remained strong
in the U.S. in March, up 13% year-over-year. Sales totalled 14.7 million units at an annualized rate.
“The rebound in sales continues to be driven by rising replacement demand from both households and busi-
nesses, the drive for incremental fuel efficiency, the strongest pace of job creation since late 2006 as well as improved credit availability,” Mr. Gomes said in a note. “As in Canada, fuel-efficient vehicles continue to lead the way.”
Overall car sales in Canada improved 6.5% year over year in March while truck sales remained flat, Desrosiers Automotive Consultants Inc. said.
Ford Motor Co. of Canada Ltd. reclaimed the top spot for Canadian sales despite a 3% decrease from March 2011.
“It was still a very strong month considering that last March we set a 12-year record,” said Dianne Craig, Ford of Canada’s chief executive.
While Chrysler Canada Inc. maintained a narrow lead in the sales race year-to-date, and managed another month of sales gains, up 8.4% yearover-year last month, it wasn’t enough to outsell General Motors of Canada Ltd. GM’S sales fell 7.4% in March, but it sold 22,684 vehicles compared with 22,545 by Chrysler.
At the end of March, Chrysler held a 15.3% market share year-to-date, while Ford’s share sat at 15.2% and GM’S was 13.8%, Desrosiers said.
Toyota Canada Inc. said its sales momentum halted with a 1.2% drop year-overyear in March after months of steady gains.
Honda Canada Inc. sales fell 7% year-over-year during the month but it managed to outsell Hyundai Auto Canada Corp. — 12,841 units versus 12,605 units— whose sales were up 8% year-over-year during the month.