TORONTO, ON - May 07, 2015 /CNW/ - Global car sales accelerated to a 3% year-over-year (y/y) increase in March, led by double-digit gains in Mexico, China and Western Europe, according to the Scotiabank Global Auto Report released today.

"Mexico has posted the strongest gains in new car sales across the world this year, with first-quarter volumes surging 22% above a year earlier and spearheading gains across North America," said Carlos Gomes, Senior Economist and Auto Industry Specialist at Scotiabank. "The strength of the Mexican auto market will help lift North American sales and production to record highs this year, surpassing the peak that has been in place since the turn of the millennium.

"Record auto sales in Mexico are being spurred by solid employment gains -- in excess of 5% y/y for permanent workers -- rising real wages, strengthening consumer confidence and improved vehicle affordability," said Mr. Gomes. "The auto industry in Mexico is now in the midst of a significant structural change, with the government substantially restricting the number of used vehicle imports. As a result, imports of pre-owned cars and trucks dropped 29% last year, and have plunged more than 70% in the opening months of 2015, enabling new vehicles to gain significant market share."

Other highlights from the report include:

• The number of potential vehicle buyers in Mexico is nearly four times greater than in Canada, per capita income is on the rise and the working age population will expand six times faster than its  NAFTA partners over the coming decade.
• Purchases in Canada set a record for the month of April, exceeding an annualized 1.9 million units, up from an average of just under 1.8 million between January and March. Light trucks -- especially crossover utility vehicles (CUVs) -- and luxury models led the way.

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

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