North American auto market revs up: Scotia Economics
Published on Friday, April 30, 2010
TORONTO - Global car sales continue to accelerate, with purchases advancing 25 per cent year-over-year during March.
The latest Global Auto Report from Scotia Economics says it was the sixth consecutive double-digit increase. The bank says emerging nations are leading the way with year-over-year gains in excess of 40 per cent.
But senior economist Carlos Gomes says volumes also continue to gain momentum in North America, and are advancing at the fastest pace since zero per cent financing began nearly a decade ago.
The report also states new vehicle prices are moving higher and that consumers are increasingly buying more expensive models.
Gomes says in particular, Canadians are shifting from small-and lower-priced cars to more expensive light trucks.
The bank says new car and truck prices have advanced roughly five per cent year-over-year in the opening months of 2010 - a sharp reversal from declining prices over the past two years.
Even prior to the latest global economic downturn, new car prices in Canada had been largely flat between 1998 and 2006.
Small cars normally account for about one-third of the Canadian market, but have fallen to less than 30 per cent of overall purchases so far this year - the lowest level in a decade.
"The shift from small cars to more expensive models reflects rising consumer confidence alongside improving economic conditions, including the restoration of job growth since August 2009," said Gomes.
Source : The Canadian Press