SOURCE: Scotiabank

Scotiabank

November 27, 2014 08:00 ET

Lower Oil Prices Will Underpin Global Auto Sales: Scotiabank Economics

TORONTO, ON--(Marketwired - November 27, 2014) - Global car sales climbed to record highs in October, with volumes advancing 3% above a year earlier, according to the Scotiabank Global Auto Report released today. China led the way, but the developed markets of North America and Western Europe also posted solid gains.

"The recent sharp drop in oil prices to the lowest level since 2010 is positive for the global auto industry, which has remained a bright light amid the ongoing sluggish economic recovery," said Carlos Gomes, Senior Economist and Auto Industry Specialist at Scotiabank. "Purchases will also benefit from increases in household purchasing power, at a time when labour market conditions are on the upswing in North America, and have started to advance year-over-year in Western Europe."

Other highlights from the report include:

  • In Canada, sales totalled an annualized 1.95 million units last month, setting a record for October and just shy of the all-time high of 2 million units set in September. The increase was broad-based, with volumes advancing in every region.
  • In the U.S., vehicle sales and household finances are on a stronger footing, consumers are feeling more confident, and are getting an additional boost in purchasing power. As a result, purchases are shifting towards higher-priced mid-size crossovers and other larger vehicles at the expense of small- and mid-size cars. Small cars now account for less than 18% of overall sales in the U.S. -- the lowest level since 2007.

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 a leading financial services provider in over 55 countries and Canada's most international bank. Through our team of more than 86,000 employees, Scotiabank and its affiliates offer a broad range of products and services, including personal and commercial banking, wealth management, corporate and investment banking to over 21 million customers. With assets of $792 billion (as at July 31, 2014), Scotiabank trades on the Toronto (TSX: BNS) and New York (NYSE: BNS) Exchanges. Scotiabank distributes the Bank's media releases using Marketwired. For more information please visit scotiabank.com.

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