Canadian auto industry looking upward

Luxury sales are sustainable in part due to a lineup of new products and technologies, the principle of Richmond Hill-based DesRosiers Automotive Consultants said. (KRISZTIAN BOCSI / BLOOMBERG)
While growth in passenger vehicle sales is expected to plateau after a multi-year boom, in Canada data so far points to ongoing strength thanks in part to better than expected job creation and a consumer appetite for luxury cars and high end SUVs that has shown no sign of waning.

“The industry is stronger than we were expecting,” Scotiabank Economics’ senior economist Carlos Gomes told The Star this week.

He added that a spending pullback by highly leveraged consumers has yet to fully materialize, while a modest strengthening of the loonie against the U.S. dollar compared to a year ago moderated the impact of manufacturers’ price increases.

Add in historically low interest rates, gas prices well off recent peaks along with the home equity and stock portfolio gains that have underpinned explosive growth in luxury vehicle sales and the market outlook has more upside potential than down, said industry analyst Dennis DesRosiers.

Source : The Star

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