Growth in global auto sales slows in May; Canada on record pace: Scotiabank

TORONTO – Scotiabank (TSX:BNS) is predicting Canada will have record sales of light vehicles this year amid continuing incentives by automakers.

Scotiabank says Canadian sales of passenger vehicles in April and May were well above the bank’s forecast levels.

As a result, Scotiabank has increased its 2013 forecast for Canadian sales of light vehicles to a record 1.72 million units, up from 1.69 million previously.

The bank’s monthly report on the global auto industry says sales in May grew at a 3.5 per cent pace, year over year, down from an average growth rate of five per cent in the previous four months.

It says the slower global sales gains reflected a recent softening in Eastern Europe — especially Russia — as well as in India, along with ongoing declines in the countries that use the euro currency.

Outside of these regions, activity remains strong led, by double-digit gains in South America, particularly Brazil, and in China.