Following several years of record new-vehicle sales in Canada, purchases are likely to lower in 2017, according to the latest Scotiabank Global Auto Report.
This year, Canada’s car volumes can be expected to be handicapped by recent price increases for new cars and light trucks, as well as lower replacement demand than in the U.S., said the report.
There were 1.9 million new-vehicle sales in Canada in 2015, with 2016 sales estimated to have reached 1.95 million units. The forecast for 2017 is a modest dip to 1.94 million.
This is still higher than the 1.27 million annual sales averaged between 1990 and 1999, the 1.61 million from 2000-13 and the 1.85 million new cars sold in 2014.
"In the United States, we see increased replacement demand, growing consumer confidence and attractive financing options, lifting sales for the third consecutive record year," said Scotiabank senior economist and auto industry specialist Carlos Gomes, in a news release.