Canadian vehicle sales up in July
Vehicle sales in Canada continued a record-breaking pace last month, with purchases advancing 0.4% above a year earlier and setting a new record for the month of July.
According to Scotiabank’s latest Auto News Flash, purchases climbed to an annualized 1.92 million units last month, up from an average of 1.84 million during the first half of 2015. “Light trucks led the way, buoyed by broad-based gains, especially year-over-year increases of more than 20% for both Jeep and Asian brands,” Scotiabank said.
In the U.S., sales were stronger than expected last month, climbing to an annualized 17.5 million units. “This represents the third consecutive month that volumes have exceeded an annualized 17 million units and is the best performance since early 2000, prior to the collapse of the global tech bubble,” Scotiabank said. “Gains are being driven by a strengthening economy, including the lowest unemployment rate in more than seven years and solid replacement demand.”
The average age of the U.S. vehicle fleet increased to a record 11.5 years in early 2015, the News Flash said, and will continue to edge higher, as there are more than 40 million vehicles on U.S. roads between the age of 11 and 14 years. “Crossover utility vehicles continue to drive gains, with volumes surging 17% above a year earlier, and more than offsetting weaker car sales,” Scotiabank said. “In particular, small CUVs were exceptionally strong, with volumes soaring 65% above a year earlier and garnering a record 5% of the U.S. market last month, up from only 3% a year ago.”