Global car sales are seeing the strongest gain in three years thanks to strong consumer spending, according to a new auto report from Scotiabank. Sales advanced eight per cent year-over-year in August, which lifted the year-to-date advance to nearly six per cent, said Scotiabank.
The improvement was driven by a 20 per cent year-over-year surge across Asia last month, as well as by continued strong gains in Western Europe.
Scotiabank said that China has been the “key driver of the acceleration in car sales across Asia this year,” but that purchases picked up in the rest of the region.
While passenger vehicle sales in North America weakened in August, Scotiabank said it expects the soft patch to be temporary. Purchases are likely to pick up as economic activity gains momentum over the remainder of 2016.
“Looking at the global auto market, even with record sales, purchases in developed markets still remain below historical averages and significant replacement demand remains in most countries, pointing to an automotive market with further ‘room to run,’” said Carlos Gomes, Senior Economist and Auto Industry Specialist at Scotiabank, in a written release.
