Resource-rich provinces to drive auto growth

Canadian auto sales climbed 6% last year, and will edge up further in 2013, advancing to 1.69 million units, the second-highest level on record, says the Scotiabank Global Auto Report. While the resource-rich provinces of Alberta, Saskatchewan, Newfoundland and Labrador will continue to lead gains, volumes in the rest of Canada will remain 6% below […]

By Staff | January 30, 2013 | Last updated on January 30, 2013

1 min read

Canadian auto sales climbed 6% last year, and will edge up further in 2013, advancing to 1.69 million units, the second-highest level on record, says the Scotiabank Global Auto Report.

While the resource-rich provinces of Alberta, Saskatchewan, Newfoundland and Labrador will continue to lead gains, volumes in the rest of Canada will remain 6% below the 2002 peak, says the report.

“The resource-rich provinces of Alberta, Saskatchewan, Newfoundland and Labrador will continue to lead gains.” says Carlos Gomes, Scotiabank’s senior economist and auto industry specialist. “Purchases in these provinces set record highs in 2012, climbing above the 2007 peak. In contrast, even with a moderate gain in the coming year, volumes in the rest of Canada will remain 6% below the 2002 peak.”

Labour markets, demographic trends and development activity are strongest in Western Canada, while a ramp up of several projects on the east coast will support regional gains.

Commodity prices have rebounded since last summer, and will be underpinned over the coming year by the recent pick up of economic growth in China and improving global financial market conditions. Global equity markets have advanced by more than 20% since mid-2012, including 5% during the first four weeks of 2013.

Read the full report here.