Global car sales gained momentum during the summer with a 6.5% year-over-year (y/y) increase in July and August, up from a 4% advance in the first half of the year, according to the latest Scotiabank Global Auto Report.
“The improvement reflects double-digit advances in the U.S. and Asia, especially China — the world’s largest and fastest-growing auto market,” said Carlos Gomes, Scotiabank’s senior economist and auto industry specialist. “In Canada, car and light truck sales set a third consecutive monthly record in September. In addition, used car prices picked up in early October alongside the recent expiry of enhanced incentives on several new vehicles, and will remain strong in coming months due to ongoing tight supplies of pre-owned models.”
Highlights in the report include:
* Incentives on new cars and light trucks surged during the summer in Canada, reducing new vehicle prices by 5% since the opening months of 2013. This represents the fifth consecutive year that automakers have boosted incentives on new vehicles to spur sales.
* Similar to Canada, a shortage of used cars and light trucks is also being felt in the U.S. As a result, the number of pre-owned vehicles imported into Canada from the U.S. has dropped sharply.
* However, after several years of fewer vehicles coming off-lease in both countries, some loosening will begin in 2014, as the new vehicle sales recovery finally increases the supply of pre-owned models for the first time since 2009.