The cyclical recovery in global auto sales remains intact with purchases advancing in every region, except Europe, over the past year, according to the latest Scotiabank Global Auto Report.
Purchases in Canada are expected to edge up to a record 1.76 million units in 2014, surpassing this year’s peak of
1.75 million. Volumes will be boosted by an improving labour market and the best vehicle affordability in more than
three decades. Despite record new vehicle sales, Canadian households now spend only 4.3% of their disposable income on purchasing new vehicles, down from 5.8% a decade ago during the previous sales peak
“Purchases in Canada are expected to edge up to a record 1.76 million units in 2014, with volumes boosted by an improving labour market and the best vehicle affordability in more than three decades,” said Carlos Gomes, Scotiabank’s Senior Economist and Auto Industry Specialist. “Volumes in Western Europe began to stabilize in the second half of 2013 and are forecast to increase next year for the first time since 2009, helping to lift global car sales to record highs.”
Highlights in the report include:
China will continue to be the main driver of global volumes. The most populous nation has accounted for nearly half of the increase in global car sales over the past decade, and more than 60% of the improvement this year.
In the United States, passenger vehicle purchases are expected to climb to 16 million units in 2014 — the highest level since 2007, as households and businesses continue to replace their aging vehicles.
The United Kingdom and Spain have been the strongest European auto markets over the past year and are expected to lead the way in 2014.
Read the full Scotiabank Global Auto Report at http://www.scotiabank.com/ca/en/0,,3112,00.html.