Light trucks dominate Canadian auto sales in 2010

Light trucks have captured more than half of all new vehicle sales in Canada so far this year, boosted by incentives from manufacturers seeking to boost market share, according to a report.

Sales of light trucks have risen 22% giving them a record 54% share of the Canadian new vehicle market, Scotiabank’s Global Auto Report said. That’s five percentage points more than last year and four times the average annual shift in the market, it said.

"Incentives have roughly doubled over the past year, climbing to nearly 30% of MSRP (Manufacturers Suggested Retail Price) for pickup trucks, and a weighted average of about 15% of MSRP for all new vehicles," Carlos Gomes, senior economist, Scotia Economics.

"This represents a sharp reversal from developments in other major auto markets, where incentives have been trending lower in 2010, as automakers attempt to gain pricing power."

Canada’s relatively robust economy and return to pre-recession employment levels are underpinning the country’s auto market. That has allowed households to purchase big-ticket items such as houses and cars, the report said.

Minivans were also big sellers in Canada this year, with a 38% gain in overall sales. Household purchases were particularly strong surging 50%, increasing the segment's share of the Canadian market for the first time since 1999.

Fleet buyers have also returned to the market after a four-year break, the report found.