TORONTO, ON - June 30, 2015 /CNW/ - Global car sales edged lower in May, falling below a year earlier for the first time since early 2013, according to the Scotiabank Global Auto Report released today. The decline was driven by large double-digit fall-offs in Russia and Brazil -- countries currently undergoing economic contraction. However, excluding these nations, activity continued to trend higher in most markets.

"Sales in Canada set a record for the month of May, fueled by a 20% year-over-year (y/y) surge in the purchases of luxury cars and light trucks," said Carlos Gomes, Senior Economist and Auto Industry Specialist at Scotiabank. "Luxury vehicles are the fastest-growing segment in Canada and across many nations this year. Purchases are being driven by rising household wealth -- the key driver of the luxury auto market -- which is being buoyed by strong equity market performances across much of the globe and ongoing house price appreciation.

"Lower gasoline prices have also provided a big boost to Canadian luxury volumes this year, spurring purchases of large luxury SUVs. Through May, sales of these models have surged 87% y/y and now account for 3% of overall luxury sales, nearly double their share of the previous five years. In fact, the popularity of these models is approaching what has been normal in the United States in recent years, a country with much lower gasoline prices."

Other highlights from the report include:

• Global purchases of luxury models have posted a double-digit gain this year, roughly five times the increase in the overall car sales across the world.
• Sales of luxury light trucks in Canada have advanced at more than double the pace of mass-market models. Rising wealth has also enabled many Canadians to shift beyond the entry-level luxury segment which accounted for much of the growth in previous decades.
• British Columbia is Canada's luxury leader with a luxury penetration rate of 15%, nearly 50% above the national average.

Read the full Scotiabank Global Auto Report online at: http://www.scotiabank.com/ca/en/0,,3112,00.html.

Scotiabank provides clients with in-depth research into the factors shaping the outlook for Canada and the global economy, including macroeconomic developments, currency and capital market trends, commodity and industry performance, as well as monetary, fiscal and public policy issues.

Scotiabank is Canada's international bank and a leading financial services provider in North America, Latin America, the Caribbean and Central America, and parts of Asia. We are dedicated to helping our 21 million customers become better off through a broad range of advice, products and services, including personal and commercial banking, wealth management and private banking, corporate and investment banking, and capital markets. With a team of more than 86,000 employees and assets of $837 billion (as at April 30, 2015), Scotiabank trades on the Toronto (TSX: BNS) and New York Exchanges (NYSE: BNS). Scotiabank distributes the Bank's media releases using CNW. For more information, please visit www.scotiabank.com and follow us on Twitter @ScotiabankNews.