Global Auto Sales Drop Sharply in September from One-off Effects and Weakness in China

TORONTO, Oct. 23, 2018 /CNW/ - Global auto sales declined in September owing to a combination of one-off factors, credit restrictions in China, and economic uncertainty in certain parts of the world, detailed Scotiabank Economist Juan Manuel Herrera in his latest Global Auto Report published by Scotiabank today. 

The Report includes a wide-ranging look at auto sales across Canada and the U.S., Latin America, Europe, and Asia-Pacific. Overall, Herrera notes that global auto sales fell from near-record levels posted a year ago in the US and a pullback of inventory-clear-out gains in the European Union prior to the introduction of new emission standards. Sales in Canada have also underperformed 2017's record figures so far this year. Total global sales are expected to expand at a slightly greater rate in 2018 than that evidenced last year, at approximately 2.5%.

"Canadian auto sales posted a sharp decline from record levels last year," said Juan Manuel Herrera, Scotiabank Economist. "However, Canada is still tracking its second strongest year on record."

Other highlights of the October 23 Report include:

• Tighter lending standards have led to a steep contraction in Chinese auto sales. After a relatively strong start to 2018, sales for the year may come only slightly above 2017's levels.
• USMCA, the rebranded NAFTA, will raise regional content requirements for automobiles and parts exports in North America and provides Canada and Mexico with exemptions from US 'national security' tariffs.

Scotiabank Economics provides in-depth commentary on economic, financial market, and policy developments, both domestically and internationally.

Read the full October 2018 Global Auto Report online here.

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SOURCE Scotiabank