Vehicle sales down in Canada in October: Scotiabank

Vehicle sales in Canada fell in October, declining below a year ago for the fourth consecutive month, according to a new report from Scotiabank – but the country has nevertheless posted the largest increase in vehicle production across the NAFTA region this year.

“While the final results still have not been released – two manufacturers have yet to report their monthly sales – volume for the rest of the industry declined 6% below a year earlier,” Scotiabank’s latest Auto News Flash said. “We estimate that this translates to an annualized sales pace of 1.87 million units – the lowest level since mid-2015 and well below the 1.95 million unit average of the previous nine months.”

The slowdown was broad-based with both car and light truck purchases falling below a year earlier, the report said. “Highlighting last month’s sluggish performance, sales of imported brands declined for the first time in three and a half years,” Scotiabank said. “While the weakness may prove temporary, it may suggest that Canadians are transitioning to more cautious spenders.”

In the U.S., meanwhile, passenger vehicle sales were stronger than expected last month, with volumes exceeding expectations at most automakers. “While full industry results will not be available until later this week due to a reporting delay at an automaker, publicly available data suggest that October sales climbed to an annualized 18 million units – the highest level of the past year and up from an average of 17.3 million during the previous nine months,” Scotiabank said. “Last month’s solid performance was buoyed by strong retail purchases and keeps the industry on pace to top the 2015 annual sales record.”

The North American auto industry is also on target to set an all-time production record in 2016, Scotiabank said, with automakers scheduling full-year output of 18.2 million units, up from the previous high of 17.9 million last year. “Canada has posted the largest increase in vehicle production across the NAFTA region this year, and activity will be buoyed going forward by recent announcements of investments of more than $1.5 billion over the next several years,” Scotiabank said.