Canada poised for strong auto sales this year: BMO

Canadian auto sales were down slightly in March, compared to the same time in 2012, but the industry is still on track to meet last year’s strong performance, BMO Economics said this week.

Auto sales decreased by 0.7% year-over-year in March, the company said.

“These figures demonstrate continued strength in Canadian auto sales,” Alex Koustas, an economist with BMO Capital Markets noted in a statement.

“It’s important to remember that first quarter sales in 2012 pushed a near-record pace. Despite trailing slightly behind, the first quarter of 2013 is again proving to be very strong for the Canadian market.”

That makes the outlook for the rest of the year quite positive, he said. “If the momentum from the first quarter continues, sales are set to come in just under last year’s stellar 1.7 million-plus sales figure.”

Robert Sadokierski, head of Dealership Financing at BMO Bank of Montreal also noted that luxury cars were key to the quarter’s strong performance, which is an indication of consumer confidence.