Car sales to hit record high in 2014
TORONTO, ON—Global car sales advanced four percent in the first half of 2014 and will climb to a record high this year, according to the Scotiabank Global Auto Report. Purchases are being boosted by strengthening global job creation and industrial activity, as well as rising consumer confidence and improving financial conditions.
“China continues to be the main driver of rising global auto sales, with purchases of cars and CUVs advancing 15 percent so far this year,” said Carlos Gomes, Scotiabank’s Senior Economist and Auto Industry Specialist. “In Canada, purchases are on target to climb to a record 1.77 million units this year, surpassing the 2013 peak of 1.74 million. Volumes are being bolstered by the best vehicle affordability in decades, low interest rates and improving consumer confidence, especially in Western Canada where the labour market is healthiest.”
Other highlights in the report include:
- The US is leading the way in North America, with volumes underpinned by a strengthening labour market and improved financing. US auto loan growth is advancing at the fastest pace in nearly a decade, while delinquencies have dropped to record lows, enabling lenders to offer lower rates and enhanced terms;
- After six years of declining volumes, car sales have started to strengthen across the new EU members in Central and Eastern Europe. However, there is a risk that car sales and economic activity across all of Europe will be dampened by the ongoing Ukraine-Russia conflict, especially as the U.S. and Western Europe toughen their sanctions on Russia; and,
- Any pickup in car sales will be slower and more challenging in South America. Activity in Brazil, which accounts for 60% of overall volumes in the region, was dampened in June/July by the FIFA World Cup and will be held back by the Presidential election in October.
Read the full Scotiabank Global Auto Report online.