Alberta, Saskatchewan Auto Buyers Boost Overall Sale

By: Anthony Fontanelle

Canadian auto sales for the month of July are higher shows an increase compared to the same period last year. Up by 0.6 percent, it is the lowest increase margin in four months for the Canadian auto industry. Last month, 142,448 new vehicles were bought by Canadians. It has been expected that the Canadian auto market will continue its climb for the rest of the year. This is in spite of the slow sales in Mexico and in the United States.

The healthy economy of the country allowed consumers to buy more cars in Canada. This is in contrast to the trend observed earlier this year when Canadian auto buyers are crossing the border to purchase vehicles. But with the Canadian dollar remaining strong, carmakers in Canada were able to offer discounts to consumers. This is one of the reasons for the increasing vehicle sales in the country.

Of all the provinces, Saskatchewan and Alberta have the most number of new vehicle buyers. Car buyers from the said provinces are boosting the overall auto sales in Canada. The increased car buying trend in Alberta has been going on for a few years now. It was expected that this year may see a slump in car buying in the particular province pointing out that consumers in the province may have already over-bought.

But with the economy staying healthy, sales in the territory continue to grow. "Rapid sales gains in Alberta, where employment growth exceeds 4.5 per cent, more than double the national average, and in Saskatchewan are buoying overall Canadian volumes," said Carlos Gomes, an economist and auto expert for the Bank of Nova Scotia, in an interview with the Calgary Herald.

The increasing car sales in Alberta have started in 2004. Last year, Alberta posted the highest increase in auto sales of all Canadian provinces. According to experts, the truck-loving Albertans are taking advantage of the discounts offered by automakers for their pickup trucks.

With the demand in the United States shifting to fuel efficient cars, automakers are burdened with the huge number of light trucks on their inventory. The healthy Canadian economy gave them an avenue to get rid of these vehicles. By offering discounts, they are turning a profit in Canadian light truck sales. Ford and Chrysler offered big discounts and other incentives for their large vehicles last month. The increased sales for the month of July show that the steps taken by the two automakers have been welcomed by Canadian auto buyers.

Albertans are becoming the most active auto buyers in Canada. Over the last ten years, Alberta's share in the auto market has increased to 16.6 percent. In 1999, the province only has ten percent of the overall Canadian auto sales.

Overall, Canadian auto buyers are more active this year than last year. With the increase in the number of new vehicles sold in the country, it can also be expected that the auto parts market will receive a huge boost. Auto parts like those found at will become more in demand as Canadian consumers have accumulated a lot of vehicles over the past years.

Canada joins other countries like China and India in terms of auto sales. These countries will be obviously where major automakers are expected to expand their presence. Several automakers including General Motors, Ford, Chrysler, Nissan, Toyota, and Honda have already started their bid for supremacy in these markets. This trend is expected to continue until the turn of the decade.

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