China in Driver's Seat as Global Vehicle Sales Continue to Rise: Scotiabank

2013 Canadian Passenger Vehicle Sales Forecast Increased to a Record 1.72 Million Units

TORONTO, June 27, 2013 /CNW/ - Global vehicle sales continued to move higher in May, but the pace of growth moderated to 3.5% year over year (y/y) from an average of 5% during the previous four months, according to the Scotiabank Global Auto Report released today.

"Slower sales gains reflect a recent softening in purchases in Eastern Europe - especially Russia - and India, as well as ongoing declines in the euro zone," said Carlos Gomes, Scotiabank's Senior Economist and Auto Industry Specialist. "Canadian passenger vehicle sales have averaged an incentive-induced, seasonally adjusted annual rate of 1.75 million units in April and May, well above Scotiabank's previous full-year forecast."

Highlights in the report include:

  • Scotiabank is increasing the Bank's 2013 Canadian passenger vehicle sales forecast to a record 1.72 million units, from 1.69 million.
  • Scotiabank continues to forecast a 10% increase in vehicle sales in China this year as employment growth and urban income growth show no sign of abating.
  • Crossover utility vehicles (CUVs) sales in China have been posting explosive growth in recent years, including a 20% surge in 2012 to 2.5 million units.
  • Canada would seem to be well positioned to be a significant beneficiary of the rising popularity of crossover utility vehicles. These models account for 40% of Canadian vehicle production and their share will increase further as Toyota continues to ramp up RAV4 output in Woodstock.
  • However the reality is that almost all of the crossovers produced in Canada remain in North America.

Read the full Scotiabank Global Auto Report at http://www.scotiabank.com/ca/en/0,,3112,00.html.

Scotiabank provides clients with in-depth research into the factors shaping the outlook for Canada and the global economy, including macroeconomic developments, currency and capital market trends, commodity and industry performance, as well as monetary, fiscal and public policy issues.

Scotiabank is a leading multinational financial services provider and Canada's most international bank. With more than 83,000 employees, Scotiabank and its affiliates serve some 19 million customers in more than 55 countries around the world. Scotiabank offers a broad range of products and services including personal, commercial, corporate and investment banking. In December 2012, Scotiabank became the first Canadian bank to be named Global Bank of the Year and Bank of the Year in the Americas by The Banker magazine, a Financial Times publication. With assets of $754 billion (as at April 30, 2013), Scotiabank trades on the Toronto (BNS) and New York Exchanges (BNS). For more information please visit www.scotiabank.com.

For high-resolution video clips visit http://media.scotiabank.com/cdaen/multimedia/mc-videos.html. For more Scotiabank economic publications visit http://www.scotiabank.com/ca/en/0,,3112,00.html.

SOURCE: Scotiabank

For further information:

Carlos Gomes, Scotiabank Economics, (416) 866-4735, carlos.gomes@scotiabank.com; or
Joe Konecny, Scotiabank Media Communications, (416) 933-1795, joe.konecny@scotiabank.com.


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