Canadian vehicle sales up in June: Scotiabank
Vehicle sales in Canada re-accelerated last month, climbing 7% above a year earlier and lifting volumes to a new record for June, according to a new report from Scotiabank.
“We estimate that Canadian vehicle sales nearly reached an annualized 2.0 million units last month, up from 1.87 million in May and an average of 1.97 million during the previous five months,” Scotiabank’s newest Auto News Flash said. “Light trucks soared to an annualized 1.31 million units — the second-highest level on record — driven by a 20% year-over-year surge for imported brands.” Pickup truck volumes were also robust, the report continued, with sales for the Detroit 3 jumping 16% above a year earlier.
“Highlighting the industry’s broad-based strength, one-third of manufacturers posted double-digit year-over-year gains last month, while most of the others reported high single-digit advances,” the report said.
Turning to the U.S., Scotiabank said vehicle sales were softer than expected last month, as weak car sales more than offset ongoing double-digit gains in light truck purchases. “We estimate that the annualized sales pace totalled 16.7 million units last month, the second lowest level of the past year and half a million units below the average of the past six months,” the report said. “Despite the sluggish performance in June, the industry still plans to assemble a record number of vehicles across North America in the July-September period. This suggests that automakers believe that the latest soft patch will be temporary, as household fundamentals and purchasing power remain solid. This view is supported by a rebound in retail activity for the two largest North American automakers last month, reversing the slide experienced at the start of the spring selling season.”