Industry Trend Analysis - Economic Strength Ensures Another Record Sales Year - OCT 2017
BMI View: The strength of growth in Canada's new light vehicle market for the year so far will prevent the market falling into contraction in 2017. The light truck segment will lead market growth as consumers continue the switch towards crossovers and SUVs, driving a decline in passenger car sales.
The strength of Canadian light vehicle sales in the first seven months of the year reflects the economic strength in the country, which has seen businesses and consumers alike expressing their confidence through vehicle purchases and will ensure another record year for sales in 2017. Sales grew 5.0% y-o-y in 7M17 to 1.2mn, having passed the 1mn units mark by H1, which was itself a milestone.
This was largely thanks to monthly sales for May and June topping 200,000 units, a feat only previously achieved in April 2016. With sales continuously outperforming the seasonal highs, we have revised up our forecast for light vehicle sales to growth of 2.3%, with much of the upward revision to light truck sales as the switch to crossovers and SUVs continues to bolster that segment.
|Above Seasonal Highs|
|Canada Light Vehicle Sales By Month ('000s)|