According to Scotiabank’s Global Auto Report, global auto sales remain bright in an otherwise sluggish growth environment, with China and North America leading the way.
“Purchases will be buoyed by strengthening labour markets, ongoing low short and long-term interest rates and monetary expansion, as the Bank of Japan and the European Central Bank (ECB) take over from the Federal Reserve and the Bank of England as the main liquidity providers,” said Carlos Gomes, Senior Economist and Auto Industry Specialist at Scotiabank.
“Financial market conditions remain supportive of further gains in sales and will likely improve once the volatility associated with the recent plunge in global oil prices begins to subside,” he continued.
Scotiabank set its target for rising overall global auto sales to advance an additional four per cent in 2015, with auto demand in China alone expected to grow seven percent in 2015 to nearly 19.5 million units.
In China, demand for new vehicles continues to be driven by Crossover Utility Vehicles, which are advancing by 40 per cent per year.
On the other side of the globe in North America, combined vehicle sales and production are expected to surpass the 2000 peak, after sales had already reached 19.8 million units and assemblies topped 17.6 million.
Scotiabank says U.S. demand will bolster Canada and Mexico’s export sales in particular, helping them exceed the 2014 sales records.
Read the full Scotiabank Global Auto Report online at: http://www.scotiabank.com/ca/en/0,,3112,00.html
