Global car sales continue to be strong, climbing four per cent year-over-year, reported Scotiabank.
Despite the uncertainty of the U.K. referendum, Western Europe has seen the largest sales increase in nearly two decades at nine per cent through May.
“Rising sales will lift vehicle production across most of the world in the second half of 2016, providing a welcome boost to industrial activity,” said Carlos Gomes, Senior Economist and Auto Industry Specialist at Scotiabank, in a written release.
Scotiabank said that the increase comes from a strengthening labour market and increased replacement demand.
Although North American vehicle production has been slow recently, with the increase of vehicles being built, factory floors are expected to be busier, said Scotiabank.
The estimated annual production rate in Canada, Mexico and the United States is expected to climb to 18.9 million units during the summer, an increase from 17.9 million from January and May, said the bank.
Other countries seeing vehicle production increases are Germany and Spain, with the highest increase in more than five years, the U.K., from the result of overseas demand for British-made cars, and China.
You can read the full Scotiabank Global Auto Report here.
