Canadian auto sales posted an increase of 1.5% in October 2008, corresponding to the increasing demand induced by the reduced prices, discounts and increasing income.
Canada’s market research company, DesRosiers Automotive Consultants, unveiled that unlike the miserable trend in the US, auto sales in Canada registered a positive growth in October 2008, as reported by Canada.
In comparison to the previous year, Canadian auto industry witnessed a 1.5% growth in the overall sales in October 2008. On the other hand, the US sales declined nearly 35% in October 2008 to near the lowest value in 25 years. A total of 122,711 vehicles were sold in Canada in October this year, with the sales of imported brands rising 8.8%.
The primary reason that propelled growth in the Canadian vehicle sales is the increase in demand triggered by the reduction in automobile prices and the discounts given by car dealers. Reduced prices led the Canadian consumers to purchase more vehicles as they are taking benefit of the deals in October 2008. The Statistics Canada price index displayed a deflation of 7% to 9% in the prices of new automobiles.
Moreover, rising income level and growing employment opportunities in Canada have increased the purchasing power of the Canadians, thereby assisting the auto industry to grow. Also, the consumers have shifted towards fuel-efficient, small cars and crossover vehicles. The step by the Canadian federal budget to subsidize the purchase of fuel-efficient vehicles further pumped growth in sales.
While the economies of most of the nations are facing a tough time due to the global financial meltdown, the growth in automobile sales in Canada has surprised many. Canadian auto industry is registering growth in sales, regardless of the massive losses faced by several investors in this phase of stock market turmoil. This growth is chiefly led by the vehicle dealers who have cut down their prices in order to lure customers.
According to a Research Analyst at RNCOS, “The Canadian automobile sector is having a good time when most of the automobile industries of the world are experiencing a tough time. Although the US market is still uncertain, the Canadian automobile sector managed to do good business. This is credited to the cut down in prices by the automobile dealers, which attracted a large number of customers to the market.”
Related Market Research Reports:
Indian Automobile Sector - A Booming Market
Global Hybrid Car Market Forecast to 2010
Slovakia Automobile Sector Analysis
