Canada nears record auto sales in 2014: Scotiabank

Passenger vehicle sales in Canada soared 13 per cent above a year earlier in September, lifting purchases to an all-time record annual rate of two million units, according to the latest figures from Scotiabank.

This surpasses the previous peak set in July and guarantees that full-year 2014 sales will exceed 1.8 million units for the first time on record, Scotiabank said in its latest global auto report, released on Oct. 31.

Sales of cars and trucks accelerated across all regions, led by a 16 per cent year-over-year surge in Ontario and a 15 per cent gain in Alberta.

“The strength of the September results, combined with ongoing promotions has led us to increase our 2014 forecast once again,” Scotiabank said. “We now expect sales to total 1.82 million units this year, up from our previous estimate of 1.79 million. We continue to expect a further small gain in 2015, as the strongest global economic growth in four years lifts export volumes.”

Global car sales re-gained momentum in September, Scotiabank said, with volumes advancing 3.5 per cent last month, up from only a one per cent increase in August. “Developed markets led the improvement, with gains accelerating in both North America and Western Europe,” the report said. “In contrast, ongoing declines in South America and Eastern Europe continue to hold back the advance in emerging markets. Sales gains also moderated in China last month, with purchases softening to an eight per cent increase from the double-digit pace of recent years. In particular, car sales in China were largely flat year-over-year in September, but crossover utility vehicles continue to advance 30 per cent above a year earlier.”

And in the U.S., overall car and light truck sales rose 9 per cent above a year ago, Scotiabank said, but the annualized sales pace eased to 16.3 million units from an elevated 17.4 million units in August. “We expect sales to continue to move higher over the next several years, bolstered by improved household balance sheets and elevated consumer confidence – currently at a seven-year high,” the report said.