Close X
Saturday, September 28, 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

City Of Aurora Heralds Diwali Celebrations In US

City Of Aurora Heralds Diwali Celebrations In US
Over 4,000 people, mostly Indian-Americans, in traditional attire, attended the event organised by the Indian-American Community Outreach Board of the city. 

City Of Aurora Heralds Diwali Celebrations In US

Decrying Socialism Bobby Jindal Wants Poor Also To Pay Taxes

"We are going the way of Europe," he said at one point. "The left is trying to change the American dream into the European nightmare."

Decrying Socialism Bobby Jindal Wants Poor Also To Pay Taxes

Russian Aircraft Disintegrates In Midair Before Crash In Egypt's Sinai Peninsula

Russian Aircraft Disintegrates In Midair Before Crash In Egypt's Sinai Peninsula
The Russian aircraft disintegrated in midair before it crashed over Egypt's Sinai Peninsula on Saturday, state-run Ahram newspaper reported on Sunday.

Russian Aircraft Disintegrates In Midair Before Crash In Egypt's Sinai Peninsula

British Sikhs Give Blood To Raise Human Rights Awareness

British Sikhs Give Blood To Raise Human Rights Awareness
Sikhs in England will donate blood as part of a campaign inspired by a human rights activist in India to protest the mistreatment of Sikh political prisoners.

British Sikhs Give Blood To Raise Human Rights Awareness

'No Indians Or Asians' Ad Sparks Outrages In New Zealand

'No Indians Or Asians' Ad Sparks Outrages In New Zealand
An ad stating "no Indians or Asians" need apply on one of New Zealand's biggest online marketplace has outraged and disappointed the Indian community

'No Indians Or Asians' Ad Sparks Outrages In New Zealand

London Police Apologize To Sikhs Over Conduct At Protest Outside Indian Embassy

London Police Apologize To Sikhs Over Conduct At Protest Outside Indian Embassy
Mak Chishty, Metropolitan Police's chief of community engagement, said concerns had been raised by Sikh representatives about the actions of some officers at the October 22 protest

London Police Apologize To Sikhs Over Conduct At Protest Outside Indian Embassy