Continued strong light-vehicle sales in the
United States and the United Kingdom helped keep the global sales rate in March virtually unchanged for the fifth consecutive month, according to an automotive analysis by J.D. Power-LMC Automotive Services.
The seasonally adjusted annualized rate (SAAR) of global light-vehicle sales during March is estimated to have been 55.8 million units -- the same as in February and up only slightly from January's selling rate of 55.7 million units. Light-vehicle sales in the United States rose from February's 16.6 million-unit selling rate to a 16.9 million-unit rate in March, according to J.D. Power and Associates.
"The U.S. auto market exceeded expectations in March as it has for each month of the first quarter," said Dr. Robert Schnorbus, chief economist
for J.D. Power-LMC in Troy, Mich. "Automakers continue their strong use of
incentives, and that, coupled with a strengthening economy, is what is
keeping sales so strong. We still anticipate sales in the U.S. to drop in
the second quarter before resuming an upward path during the rest of the
year. In the long run, we expect annual sales to remain very strong."
Growth in light-vehicle sales continued in the United Kingdom,
accounting for nearly 19 percent of March light vehicle sales in Western
Europe. The Italian and Spanish markets struggled last month.
"Western Europe has become even more reliant on the phenomenal sales
boom that is in progress in the U.K.," said Charles Young, director of
research for J.D. Power-LMC in Oxford, England. "The U.K. portion of sales
in Western Europe was much higher in March than we've seen in the past or
are likely to see in the future."
According to the analysis, Canada's sales, like U.S. sales, are getting a boost from a
recovering economy and continued use of incentives. Canadian sales were down
from unsustainable levels in January and February, but March's sales were
still relatively robust, according to Schnorbus.
Japanese demand saw another sharp dip in March. Earlier in the year,
weak Japanese demand was being offset by booming Korean sales. The strong
Korean market-up 17.2 percent compared with a year ago-was no longer able to
offset the increased weakness in the Japanese market. Japanese sales in
March were down 7.4 percent compared with last year.
In South America, the economic crisis in Argentina continued to
plague the Mercosur market. Mercosur sales in March were down 20.4 percent
compared with a year ago.
J.D. Power-LMC, a global alliance between J.D. Power and Associates
and LMC Automotive Services in Oxford, England, provides
vehicle forecasts and competitive assessments on a worldwide basis.
Headquartered in Agoura Hills, Calif., J.D. Power and Associates is
a global marketing information services firm operating in business
sectors including market research, forecasting, consulting, training and
customer satisfaction. J.D. Power and Associates can be accessed through the
Internet at www.jdpa.com. LMC Automotive Services is an economic research
and forecasting firm headquartered in Oxford, England. It can be accessed
through the Internet at www.lmc.co.uk.