TORONTO, July 30, 2018 /CNW/ - Automobile sales in Canada and the U.S. remain just below record-high sales levels, 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 continued to expand at a solid pace in the first half of 2018.  The rise is largely attributed to strong gains in emerging markets and better than anticipated sales in the U.S., but global trade tensions may put a dent on vehicles sales growth.

"Rising auto sales in Ontario, and to a lesser degree Quebec, have prevented a large decline in Canada-wide sales following a sharp contraction in the Western provinces in the first six months of 2018," wrote Juan Manuel Herrera, Scotiabank Economist. 

Other highlights of the July 30 Report include:

• Mexican auto sales fell for the thirteenth consecutive month in year-on-year terms in June amid political uncertainty, but should get a boost from improved economic sentiment in the second half of the year with the electoral period in the rear-view mirror, though they may remain constrained by monetary policy.
• The Chinese auto market seems to have been impacted by the threat of rising U.S. protectionism while vehicle purchases in Brazil and Argentina have slowed in recent months amid a loss of economic momentum.
• On July 25, President Trump and European Commission President Jean-Claude Juncker announced that the US and the EU will hold off on the imposition of additional import tariffs, namely on autos, as the two parties look toward negotiating freer reciprocal trade.

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

Read the full Scotiabank Global Auto Report online here.

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SOURCE Scotiabank