Vehicle sales boom continued in October: Scotiabank

Canadian vehicle sales continued a record-setting pace in October, a new report from Scotiabank said, with volumes advancing 5 per cent above a year earlier in October and remaining above an annualized 2 million units for the second consecutive month.

“The last two months have been the only time on record that Canadian sales have scaled the 2 million unit mark,” Scotiabank said in its latest Auto News Flash. “Prior to this year, the monthly peak had been 1.93 million units set in September 2014.”

Light trucks and luxury vehicles continue to lead the advance, the report said, as consumer sentiment rebounded last month, alongside double-digit gains in British Columbia and Ontario — the two provinces leading the improvement in retail activity, with purchases advancing year-to-date by 7% and 3% respectively.

Turning to the U.S., the report said that purchases exceeded expectations once again last month, as a strong labor market, enhanced credit availability and affordable fuel prices encouraged shoppers to replace their aging vehicles. “We estimate that sales totalled an annualized 18.1 million units last month,” the report said. “This represents the best back-to-back monthly performance since early 2000, when the global economy was still in the midst of the ‘tech boom’”.

In both nations, the report said, households are driving the better-than-expected performance, with retail purchases at the two largest North American automakers advancing 16 per cent above a year ago, led by sharp gains in crossover utility vehicles — the segment that is now the largest in North America, Scotiabank said.