Close X
Sunday, November 17, 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

Missing Man's Body Found In London Hotel

Missing Man's Body Found In London Hotel
Police have found a body in a London hotel which, they believe, belongs to an Indian-origin man who disappeared last week, a media report said.

Missing Man's Body Found In London Hotel

Indian store owner foils robbery in New Zealand

Indian store owner foils robbery in New Zealand
An Indian-origin businessman in New Zealand foiled a robbery attempt at his store when he wrestled the gun away from a masked man and chased him away, a media report said on Tuesday.

Indian store owner foils robbery in New Zealand

Richmond Shooting Victim Has Gang-Ties: Police

Richmond Shooting Victim Has Gang-Ties: Police
RCMP says officers responded to a call about a man shot near Dover Park and found a man with multiple gun shot wounds.

Richmond Shooting Victim Has Gang-Ties: Police

Indian Chef Sanjeev Kapoor Opens Restaurant In Muscat

The Yellow Chilli opened in Muscat offers spacious indoor seating for 95 people and an additional space for 40 people outside the restaurant,

Indian Chef Sanjeev Kapoor Opens Restaurant In Muscat

Two Arrested In Northern Greece Over Temporary Closure Of Canadian Gold Mine

THESSALONIKI, Greece — Police have arrested two union leaders after hundreds of miners blocked roads to protest the temporary closure of a controversial Canadian gold mine in northern Greece.

Two Arrested In Northern Greece Over Temporary Closure Of Canadian Gold Mine

Indian American Judge Among 11 Obama Appointees

Indian American Judge Among 11 Obama Appointees
US President Barack Obama has appointed Indian American federal judge Vince Chhabria along with 10 others as full-time judges, a media report said.

Indian American Judge Among 11 Obama Appointees