Canada auto sales hit new highs in 2016 on pickups, SUVs: analysts
By Allison Lampert
MONTREAL (Reuters) - Canadian auto sales hit record highs in 2016 because of consumer demand for pickups and SUVs, despite ending the year on a weaker note that could continue this year, analysts said on Wednesday, citing automakers' data.
Automakers sold around 1.95 million units in Canada last year, up about 3 percent from another record year, 2015, auto analyst Dennis DesRosiers and Scotiabank Senior Economist Carlos Gomes wrote in notes to clients on Wednesday afternoon.
December sales in Canada declined around 3 percent on an annual basis because of weaker demand for cars, they wrote.
But after three years of increasing Canadian auto sales, Gomes does not expect another record in 2017 as manufacturers raise prices due to the comparative weakness of the Canadian dollar, which closed today at $1.3308, or 75.14 U.S. cents.
"Purchases have consistently climbed to new annual records since 2013, but are likely to trend lower over the coming year, pressured by some deterioration in vehicle affordability," Gomes wrote.
Ford Motor Co (F.N: Quote), the top seller in Canada, said 2016 was its best year for Canadian sales since 1989, largely because of demand for its F-Series pickups. The automaker said in a statement it sold 304,618 vehicles in Canada in 2016, up 9.4 percent in 2015.
General Motors Co (GM.N: Quote) delivered 267,341 vehicles in 2016, up 1.5 percent from the previous year, while Fiat Chrysler Automobiles (FCHA.MI: Quote) reported a 4 percent decline in sales last year from 2015.