Close X
Sunday, September 29, 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

Curry Crisis: Scotland's Biggest Indian Restaurant Chain, Ashoka, Up For Sale

Curry Crisis: Scotland's Biggest Indian Restaurant Chain, Ashoka, Up For Sale
The Indian-descent owner of the chain, Sanjay Majhu, 48, has sold four of the 14 restaurants last year, including Ashoka West End in Argyle Street, Glasgow.

Curry Crisis: Scotland's Biggest Indian Restaurant Chain, Ashoka, Up For Sale

Indian Community In Washington Celebrates Independence Day

Indian Community In Washington Celebrates Independence Day
Over 350 community members attended the Independence Day celebrations at Embassy Residence and sang the national anthem.

Indian Community In Washington Celebrates Independence Day

Anil Kapoor Lights Up Indian Independence Day Celebrations In Melbourne

Anil Kapoor Lights Up Indian Independence Day Celebrations In Melbourne
Bollywood superstar Anil Kapoor unfurled the Indian flag at Federation Square on Saturday to commemorate India's 69th Independence Day.

Anil Kapoor Lights Up Indian Independence Day Celebrations In Melbourne

I Complied With Facebook's Requests, Says Aran Khanna Losing Facebook Internship

I Complied With Facebook's Requests, Says Aran Khanna Losing Facebook Internship
A day after Facebook claimed that Indian-origin Aran Khanna did not remove the code from a malicious app despite requests, Khanna said on Saturday he had complied with all the requests of the social media giant.

I Complied With Facebook's Requests, Says Aran Khanna Losing Facebook Internship

It's Wedding Day For Pierre Karl Peladeau And Julie Snyder In Quebec City

It's Wedding Day For Pierre Karl Peladeau And Julie Snyder In Quebec City
QUEBEC — More than 400 people are expected to celebrate today's wedding of Parti Quebecois Leader Pierre Karl Peladeau and television star Julie Snyder in Quebec City.

It's Wedding Day For Pierre Karl Peladeau And Julie Snyder In Quebec City

UK PM David Cameron Backs Royal Family In Spat With Paparazzi Over Photos Of Toddler Prince George

UK PM David Cameron Backs Royal Family In Spat With Paparazzi Over Photos Of Toddler Prince George
Cameron expressed concern Saturday for Prince William and his wife, Kate, because of the "extreme lengths" photographers have used to get images of the 2-year-old heir to the throne.

UK PM David Cameron Backs Royal Family In Spat With Paparazzi Over Photos Of Toddler Prince George