Close X
Monday, November 25, 2024
ADVT 
International

Auto Sales On Pace For Record, Driven By Popularity Of Light Trucks

Darpan News Desk The Canadian Press, 04 Jul, 2016 01:13 PM
  • Auto Sales On Pace For Record, Driven By Popularity Of Light Trucks
TORONTO — At least once a week, 76-year-old Ken Dacko makes the 200-kilometre round trip from his home in Alma, Ont., to the factory in Brampton, Ont., where he works.
 
Earlier this year, Dacko purchased a 2016 Jeep Wrangler. He says driving a brand-new vehicle that's reliable and guaranteed to start gives him peace of mind.
 
"Four-wheel drive is important for the winter time because I leave for work around three-thirty, four o'clock in the morning, and sometimes the roads this far north are not plowed," he says.
 
Dacko is one of thousands of Canadians snapping up new vehicles in droves, despite concerns about the economy and mounting consumer debt.
 
DesRosiers Automotive Consultants is expected to release figures later Monday showing how auto sales have fared for the first six months of the year.
 
The market research firm said last month that May sales dipped slightly from a year ago, but on a year-to-date basis they were still up 5.6 per cent, putting Canada on track for another record-breaking year.
 
Experts say cheap credit and economic strength in Ontario, British Columbia and to some extent Quebec are helping drive sales.
 
"Interest rates are incredibly low, and as we all know, vehicles are one of the big purchases in people's lives," says Charlotte Yates, an automotive industry expert and vice-president academic at the University of Guelph.
 
In recent years, consumers have been gravitating away from passenger cars and towards light trucks, a category that includes pickups, SUVs, minivans and crossovers. So far this year, that trend has continued.
 
Automotive analyst Dennis DesRosiers says crossovers have become especially popular in recent years, displacing the minivan as the family vehicle of choice.
 
"They fit everything, so the boomer has a vehicle that they can load up with their sports equipment and head out to the beach, and grandma and grandpa that are babysitting have a vehicle that they can put the kids in," DesRosiers says.
 
Their height also makes them convenient for people who may have mobility issues.
 
"They're much easier to get into and out of as opposed to a small sedan," says Scotiabank economist Carlos Gomes.
 
Yates says the relationship that Canadians have to the outdoors is another reason why sales of light trucks have been on fire.
 
"I do think there is a kind of iconic culture around the SUV, the crossover, the truck," says Yates. 
 
"We live a paradoxical existence. More and more of us live in cities, but we still have the myth that we need the four-wheel drive because we're going to the country. ... It's about expressing a kind of lifestyle choice, and I think that it's been very, very powerful."

MORE International ARTICLES

'Lost Between Both Worlds': Why Afghan Sikhs, Hindus Are Leaving 'Home'

For centuries, Hindu and Sikh communities played a prominent role in merchant trade and money lending in Afghanistan, although today they are known more for medicinal herb shops.

'Lost Between Both Worlds': Why Afghan Sikhs, Hindus Are Leaving 'Home'

Parents Of 'Jihadi Jack' To Face Terror Trial In UK

Parents Of 'Jihadi Jack' To Face Terror Trial In UK
The parents of a white British Muslim convert dubbed "Jihadi Jack", thought to be fighting in Syria with the ISIS terrorisms, will stand trial in January accused of funding terrorism.

Parents Of 'Jihadi Jack' To Face Terror Trial In UK

Team From India To Participate In NASA Competition

Team From India To Participate In NASA Competition
A team of 13 Indian engineering students, including four girls, will participate in NASA's prestigious global competition to build and design remotely operated vehicles from scratch.

Team From India To Participate In NASA Competition

Amjad Sabri Laid To Rest Amid Tears, Thousands Attend Karachi Funeral

Amjad Sabri Laid To Rest Amid Tears, Thousands Attend Karachi Funeral
Sabri was laid to rest amid tears next to his father Ghulam Farid Sabri, in the compound of Pir Herat Shah Warsi's shrine.

Amjad Sabri Laid To Rest Amid Tears, Thousands Attend Karachi Funeral

Abdur Rehman Admits Link With Kandahar Plane Hijack Terrorists

Abdur Rehman Admits Link With Kandahar Plane Hijack Terrorists
Al-Qaeda Indian sub-continent (AQIS) operative Mohammed Abdur Rehman has admitted his links with the terrorists involved in the 1999 Kandahar plane hijack and 2002 American Centre blast incident in Kolkata, a senior police official said today.

Abdur Rehman Admits Link With Kandahar Plane Hijack Terrorists

Indian-Origin Steel Tycoon Sanjeev Gupta Hires Tata Steel Ex-Chief

Indian-Origin Steel Tycoon Sanjeev Gupta Hires Tata Steel Ex-Chief
Indian-origin businessman Sanjeev Gupta led Liberty House Group on Thursday announced the appointment of a former Tata Steel Europe senior executive as managing director of one of its steel operations.

Indian-Origin Steel Tycoon Sanjeev Gupta Hires Tata Steel Ex-Chief