Sales staff work on deals with customer inside Hyundai of Mississauga, April 22, 2013. Scotiabank is now forecasting record auto sales this year.J.P. MOCZULSKI/The Globe and Mail
The strength in Canadian vehicles sales in April and May has prompted Bank of Nova Scotia economist Carlos Gomes to raise his forecast for annual sales.
Mr. Gomes is now forecasting a record high level of 1.72 million units, up from his previous forecast of 1.69 million.
The upgrade is driven in part by healthy incentives auto makers are offering in the Canadian market, he said.
But the new number also depends on auto makers maintaining those incentives through the end of 2013 in the wake of Federal Reserve Board chairman Ben Bernanke's statement that the U.S. central bank will begin reducing liquidity during the second half of the year, he said.