Canadian auto sales bounced back in September: Scotiabank

Automotive sales in Canada bounced back in September 2016, but remained marginally below the year-ago record for September.

According to the latest Auto News Flash from Scotiabank, purchases totalled an annualized 1.96 million units in September, up from a subpar performance during the previous two months and a year-to-date average of 1.95 million. “In fact, several automakers set sales records for the month of September, and the overall industry total only fell short of last year’s peak due to a double-digit slide at a manufacturer currently undergoing a significant sales adjustment,” Scotiabank said.

Excluding that automaker, Scotiabank continued, Canadian passenger vehicle sales rose 2% above a year earlier, led by an 8% jump in light truck purchases. “In particular, sales of imported light truck brands advanced 11% above a year earlier, with broad-based double-digit gains across most of the industry,” the report said.

In the United States, automotive purchases were stronger than expected last month, climbing to an annualized 17.7 million units, up from less than 17 million in August and an average of 17.2 million during the previous eight months. “Light trucks — especially crossover utility vehicles — led the way with a double-digit increase. In particular, imported brands outperformed, with light truck volumes for the largest three Japanese automakers soaring nearly 15% above a year earlier,” Scotiabank said.

Last month’s strong sales prompted automakers to add an additional 30,000 units to their full-year 2016 North American production forecast, Scotiabank continued. “This added production boost will lift full-year assemblies in Canada, the U.S. and Mexico to a record 18.25 million units, roughly 2% above last year’s annual peak,” the report said.