Canadian car sales revved up this summer with a boost from incentives such as “employee pricing for everyone” to surpass sales growth in the rest of the world, said a new report by Scotia Economics Monday.
New vehicle sales reached the highest level in nearly three years this summer, prompting Scotia analyst Carlos Gomes to raise his full-year forecast to 1.565 million units from 1.525 million.
Year-over-year Canadian car sales were up 6%, climbing to an annualized rate of 1.65 million units. In fact, several automakers enjoyed a record July, according to the report.
“This represents the second consecutive monthly rebound from a weak performance in May and indicates that Canadians are once again in a vehicle-buying mood,” Gomes said.
Meanwhile, global auto sales slowed down significantly over last year as “cash for clunkers”-type programs expired against a backdrop of weak consumer confidence and weak employment growth.
Canadian vehicle sales grew to 1.62 million units in June and July up from 1.48 million in May. The Canadian economy has added 43,000 jobs per month on average in recent months.
That combined with the fact that sticker prices have dropped more than 5% since February has sent drivers on a shopping spree.
[Source: Canoe.ca]
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