Luxury vehicles are the fastest-growing segment in many countries across the globe — and in Canada, reports Scotiabank.
According to the Scotiabank Global Auto Report, sales of luxury light trucks in Canada have advanced at more than double the pace of mass-market models.
Fuelling the Canadian luxury vehicle sales is British Columbia, with a luxury penetration rate nearly 50 per cent above the national average at 15 per cent.
Carlos Gomes, Senior Economist and Auto Industry Specialist at Scotiabank, attributes the growth to rising household wealth spurred by strong equity market performances and house price appreciation.
Gomes also says lower gas prices have provided a big boost to Canadian luxury sales, particularly for large luxury SUVs. As of May, Gomes says sales of these models account for three per cent of overall luxury sales —nearly double their share of the previous five years.
“In fact, the popularity of these models is approaching what has been normal in the U.S. in recent years, a country with much lower gasoline prices,” says Gomes.
Scotiabank also reports global luxury vehicle sales posted a double-digit gain this year.
