Close X
Friday, October 4, 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

Kashmir missing from map, official with Modi protests

Kashmir missing from map, official with Modi protests
An improper Indian map with parts of Jammu and Kashmir missing, put up during Prime Minister Narendra Modi's visit to the Queensland University of Technology...

Kashmir missing from map, official with Modi protests

Economic ties top agenda as Modi meets Cameron, EU chief, Abe

Economic ties top agenda as Modi meets Cameron, EU chief, Abe
Ahead of the G20 Summit, Indian Prime Minister Narendra Modi held his first bilateral meetings with European Union President Herman Van Rompuy and British Prime Minister...

Economic ties top agenda as Modi meets Cameron, EU chief, Abe

Comet lander Philae might run out of power soon

Comet lander Philae might run out of power soon
European Space Agency's comet lander Philae might run out of power soon as it rested in a cliff shadow and could not enjoy enough sunlight, scientists...

Comet lander Philae might run out of power soon

Indian-origin cab driver attacked in New Zealand

Indian-origin cab driver attacked in New Zealand
A seriously injured Indian-origin cab driver in New Zealand is recovering from emergency surgery following a vicious, unprovoked attack in the North...

Indian-origin cab driver attacked in New Zealand

Australia struggles to prevent residents from joining IS

Australia struggles to prevent residents from joining IS
The Australian Federal Police have admitted they are struggling to deal with the exodus of young Australians leaving the country to fight for the Islamic State (IS)....

Australia struggles to prevent residents from joining IS

Cameron calls for removal of IS propaganda from internet

Cameron calls for removal of IS propaganda from internet
British Prime Minister David Cameron Friday called on governments and internet companies to do more to remove from the web the propaganda of the Islamic State (IS) Sunni radical organisation....

Cameron calls for removal of IS propaganda from internet