Close X
Friday, September 27, 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

16 Indians Targeted In Hate Crimes In Three Years

16 Indians Targeted In Hate Crimes In Three Years
Sixteen Indians were targeted in 'hate crimes' in foreign countries in the last three years, including seven this year, Minister of State for Overseas Indian Affairs V.K. Singh said on Thursday.

16 Indians Targeted In Hate Crimes In Three Years

Carolina Herrera, Duro Olowu, Carol Lim And Humberto Leon Decorate White House For Christmas

Carolina Herrera, Duro Olowu, Carol Lim And Humberto Leon Decorate White House For Christmas
WASHINGTON — Four designers whose clothes Michelle Obama has worn also designed and decorated three rooms on the ground floor of the White House for Christmas.

Carolina Herrera, Duro Olowu, Carol Lim And Humberto Leon Decorate White House For Christmas

Gold Price Sinks Six-year Low On Fed Rate Hike Fears

Gold Price Sinks Six-year Low On Fed Rate Hike Fears
Gold prices plunged on Thursday to a six-year low in the international markets amid fears of the US Federal Reserve hiking short-term interest rates at its December 15-16 policy meeting in Washington.

Gold Price Sinks Six-year Low On Fed Rate Hike Fears

Canadian Ministers Harjit Sajjan, John McCallum Tour Syrian Refugee Camp In Jordan

Canadian Ministers Harjit Sajjan, John McCallum Tour Syrian Refugee Camp In Jordan
The Ministers made this trip to experience first-hand the situation on the ground, as the Government of Canada implements its commitment to bring 25,000 Syrian refugees to Canada.

Canadian Ministers Harjit Sajjan, John McCallum Tour Syrian Refugee Camp In Jordan

Mass Shooting In Southern California City Of San Bernardino: 14 Killed

Mass Shooting In Southern California City Of San Bernardino: 14 Killed
The San Bernardino City Fire Department said via its Twitter account that it was responding to reports of 20 victims.

Mass Shooting In Southern California City Of San Bernardino: 14 Killed

Four PIOs Named Among 100 Leading Global Thinkers

Four PIOs Named Among 100 Leading Global Thinkers
Four persons of Indian origin are featured in Foreign Policy magazine's list of 100 Leading Global Thinkers who have generated ideas that could promise humankind a better future.

Four PIOs Named Among 100 Leading Global Thinkers