Record vehicle sales in Canada in June: Scotiabank

Vehicle purchases in Canada climbed 6.5% year-over-year in June 2017, a new report from Scotiabank said, setting a record for June and lifting the annualized sales pace to nearly 2.1 million units – or roughly 2% above the January-May average.

Light truck sales posted a double-digit year-over-year increase and continued to lead the way, Scotiabank’s latest Global Auto Report said, garnering nearly 69% of the Canadian new vehicle market, up from 65% a year ago. “In particular, sales of pickup trucks surged 21% year-over-year, pointing to improving prospects for business investment, especially in oil patch,” the report said. “Nearly one-third of all pickup trucks sold in Alberta are bought for business purposes. This is roughly double the share of business purchases in the rest of Canada.”

In the United States, meanwhile, most automakers reported better-than-expected sales last month, as demand continues to shift to crossovers, SUVs and pickup trucks. “However, double-digit declines in fleet volumes and at several Asian automakers reduced the annualized sales pace to only 16.4 million units, well below the average of 17 million during the previous five months,” Scotiabank said. “Despite the sub-par overall performance, retail volumes remained healthy and the industry’s average transaction price climbed to new heights, as light trucks garnered a record share of the U.S. market.”

U.S. purchases have eased 2% year-over-year in the first half of 2017, Scotiabank said, largely due to a weaker fleet purchases, especially from North American automakers. “This suggests that even with some stabilization in fleet activity in the second half of 2017, the industry will likely experience a small annual sales decline for the first time since 2009,” the report said. “However, strengthening economic activity – especially a robust labour market, elevated consumer confidence and an ageing vehicle fleet – point to a healthy U.S. auto market for an extended period.”