Close X
Friday, November 15, 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

Watch: Narendra Modi Hard Sells Brand India To British Indians At Wembley Stadium

Watch: Narendra Modi Hard Sells Brand India To British Indians At Wembley Stadium
“India is full of diversity. This diversity is our pride and our strength,” Modi said as a frenzied crowd of 60,000 British Indians chanted “Modi, Modi” at the iconic Wembley Stadium here. 

Watch: Narendra Modi Hard Sells Brand India To British Indians At Wembley Stadium

Terror Attack In Paris: More Than 100 Killed In Gunfire And Suicide Bombs Blasts

Terror Attack In Paris: More Than 100 Killed In Gunfire And Suicide Bombs Blasts
At least 100 dead in series of Paris terror attacks: Kalashnikov-wielding gunman opens fire in restaurant. 100 hostages are taken at theatre. Two SUICIDE bombs detonate near the Stade de France. Gunfire at shopping centre

Terror Attack In Paris: More Than 100 Killed In Gunfire And Suicide Bombs Blasts

35 Killed In Beirut Suicide Bombings

35 Killed In Beirut Suicide Bombings
At least 35 people were killed and over 180 others injured in two suicide bombings that rocked the Burj el-Barajneh region here in Lebanon on Thursday, Xinhua reported.

35 Killed In Beirut Suicide Bombings

Civil N-Deal Signed As Narendra Modi Begins Britain Visit

Civil N-Deal Signed As Narendra Modi Begins Britain Visit
Prime Minister embarked on a three-day visit to Britain on Thursday, New Delhi and London signed a civil nuclear cooperation agreement after the two sides held delegation level talks here.

Civil N-Deal Signed As Narendra Modi Begins Britain Visit

In Aftermath Of Keystone XL Rejection, No Easy Options For TransCanada

In Aftermath Of Keystone XL Rejection, No Easy Options For TransCanada
Immediately after U.S. President Barack Obama denied a permit for the Keystone XL pipeline, TransCanada Corp. (TSX:TRP) vowed to review all of its options.

In Aftermath Of Keystone XL Rejection, No Easy Options For TransCanada

10 US Lawmakers Wish Happy Diwali And Saal Mubarak!

Ten US lawmakers including the lone Indian-American Congressman Ami Bera and the only Hindu-American lawmaker Tulsi Gabbard joined "Hindus, Jains, Sikhs, and Buddhists across the world" in celebrating Diwali.

10 US Lawmakers Wish Happy Diwali And Saal Mubarak!