SOURCE: Scotiabank

Scotiabank

June 04, 2015 08:00 ET

Global Auto Markets Diverge as Europe Gears Up, but Brazil Drives South America Lower

TORONTO, ON--(Marketwired - June 04, 2015) - Global car sales increased 2% year-over-year (y/y) in April, led by a 6% y/y advance in the developed markets of Western Europe, North America and Japan, according to the Scotiabank Global Auto Report released today.

"The global auto market remains on target to climb to record highs in 2015 -- the sixth consecutive annual record," said Carlos Gomes, Senior Economist and Auto Industry Specialist at Scotiabank. "However, despite ongoing gains the regional divergence is widening. Economic conditions and auto sales have shifted into acceleration mode across Western Europe, are in cruise control in North America and Asia, but are stuck in reverse in Russia and South America."

"Car sales in Russia plunged more than 40% below a year earlier in April, while activity in South America dropped 20% y/y, largely due to a sharp slide in Brazil," said Mr. Gomes. "The ongoing weakness in South America points to the first back-to-back annual decline in car sales in the region since the bursting of the global tech bubble at the start of the millennium."

Other highlights from the report include:

  • Volumes in the United States and Canada exceeded an annualized 19 million units in May -- the highest level in nearly a decade.
  • Sales in Canada set a record for the month of May and remained above an annualized 1.9 million units for the second consecutive month.
  • The sales downturn in South America has been broad-based this year, but countries with low inflation and ongoing job gains (e.g. Chile and Peru) will be among the first to recover.

Read the full Scotiabank Global Auto Report online 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 Canada's international bank and a leading financial services provider in North America, Latin America, the Caribbean and Central America, and parts of Asia. We are dedicated to helping our 21 million customers become better off through a broad range of advice, products and services, including personal and commercial banking, wealth management and private banking, corporate and investment banking, and capital markets. With a team of more than 86,000 employees and assets of $837 billion (as at April 30, 2015), Scotiabank trades on the Toronto (TSX: BNS) and New York Exchanges (NYSE: BNS). Scotiabank distributes the Bank's media releases using Marketwired. For more information, please visit www.scotiabank.com and follow us on Twitter @ScotiabankNews.

Contact Information