(Photo: Toyota)

TORonTO – A new report from Scotiabank is predicting that a surge of global vehicle sales in the early months of 2013 will lead to a boost in economic activity worldwide.

Global vehicle sales shifted into high gear in the opening months of 2013, with purchases in January soaring 13 per cent above a year earlier the strongest gain since early 2010 when the global economy was building momentum in the early stages of the current global economic expansion, stated Carlos Gomes, Scotiabanks Senior Economist and Auto Industry Specialist.

China led the way with volumes soaring 49 per cent year over year, but the improvement was broad-based with every region, excluding Western Europe, posting solid advances.

Another notable improvement was the increased sales of US pick-up trucks. The report cited an improved housing market as a reason for a 21 per cent jump in truck sales versus last year.

Conversely, Canada experienced a three per cent dro in pick-up truck sales compared to last February. The poor sales were attributed to bad weather, and weak consumer confidence. But, sales were expected to pick up in the spring, and overall 2013 sales targets remain on track.

Internationally, Thailand lead the way with the biggest surge in in year over year production. Vehicle output jumped 68 per cent against last January vaulting the country into the top 10 in global auto manufacturing.

Mexico is also leading the way in auto assembly in North America, while Canada is specializing in Crossover Utility Vehicle segment, which has seen a rising demand. As a result, Toyota has hired 400 new employees at its Woodstock, ontario location (which makes the RAV4), while Honda is boosting assemblies of its CR-V at their Alliston, ontario facility.