Close X
Tuesday, October 1, 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

Modi Seeks Strong Partnership Between Indian Lion, German Eagle

Prime Minister Narendra Modi on Tuesday wooed German business, assuring an open and stable environment in India to give a fillip to his 'Make in India' initiative, and said there could be a strong partnership between India's Lion and Germany's Eagle.

Modi Seeks Strong Partnership Between Indian Lion, German Eagle

European Parliament, Belgium To Host Yoga Events, Sri Sri Ravi Shankar To Lead

European Parliament, Belgium To Host Yoga Events, Sri Sri Ravi Shankar To Lead
Sri Sri Ravi Shankar will lead a special yoga event in the European Parliament (EP) in Brussels on April 21 following efforts in this regard by Indian Ambassador to the EU and Belgium, Manjeev Singh Puri.

European Parliament, Belgium To Host Yoga Events, Sri Sri Ravi Shankar To Lead

Vandals Deface Glasgow Gurdwara With Islamophobic Graffiti And Nazi Swastika

Vandals Deface Glasgow Gurdwara With Islamophobic Graffiti And Nazi Swastika
A gurdwara in the largest city of Scotland has been defaced by vandals with the words "No Shariah" and a Nazi symbol, a media report said on Monday.

Vandals Deface Glasgow Gurdwara With Islamophobic Graffiti And Nazi Swastika

Indian-American Entrepreneur Frank Islam Invests In The Future Of India

He was born in Azamgarh, Uttar Pradesh, shifted to the US when he was just 15 and now lives in a 40,000-square-foot mansion that has a five-bedroom guest house and a backyard tea house along with reflecting pools on nine acres in Potomac, Maryland, a house that took six years to build.

Indian-American Entrepreneur Frank Islam Invests In The Future Of India

India Is Better Country Today For Foreign Investors: Modi

India Is Better Country Today For Foreign Investors: Modi
Prime Minister Narendra Modi, who has invited global companies to invest in India, continued his pitch at the grand industrial fair here on Monday, this time listing what exactly makes the country an attractive destination.

India Is Better Country Today For Foreign Investors: Modi

Britain's Labour Party Manifesto Ignores India

Britain's Labour Party Manifesto Ignores India
The British Labour party manifesto released on Monday makes no mention of India and speaks of stricter policy on immigration.

Britain's Labour Party Manifesto Ignores India