October Sales: SAAR Could Hit 17M for 5th Straight Year
The latest report shows U.S. new car dealers are on pace for yet another 17 million-unit year, led by gains at Japanese and Korean factories, increased incentive spending, and fleet sales.
Honda reported a 7.6% year-over-year sales increase in October, propelled by sales of light trucks, including the Ridgeline pickup as well as its lineup of SUVs and crossovers.
Photo courtesy American Honda Motor Co.
(Bobit) — The seasonally adjusted annualized rate of U.S. new vehicle sales could exceed 17 million units for the fifth straight year, according to reports and estimates compiled by Automotive News. That would register as a mild surprise for the industry, for which most forecasters predicted at least a slight dropoff for 2019.
Sales were down 1.8% year-over-year in October and were down 1.6% through September, according to the Automotive News Data Center.
Each of the Detroit 3 manufacturers has ceased issuing monthly sales reports; Q4 numbers are expected in the first week of January. Analysts estimate a prolonged United Auto Workers strike dinged General Motors to the tune of a 12% year-over-year decline and that Ford (-1.9%) and Fiat Chrysler (-2.8%) also suffered minor setbacks in October.
Read: Average New Vehicle Prices Up Nearly 3% in October
Hyundai and Kia (11.1%), Honda (7.6%), and Subaru (0.2%) registered year-over-year gains. Those factories were joined in the winners’ circle by Volvo (20%), Audi (19%), Porsche (13%), Mazda (4.5%), and Land Rover (3.1%). Genesis topped them all with a 420% increase from October 2018.
On the decline was Nissan (-5.8%), Volkswagen (-3.2%), and Toyota (-1.2%). Mini (-18%), Jaguar (-11%), and Mitsubishi (-7.9%) also registered year-over-year losses.
“Although OEM incentives growth has diminished, deals remain plentiful.”
Analysts say much of the credit for a strong October should go to high incentives and sustained fleet sales. ALG reports incentives were up 4.7% overall, led by GM and Fiat Chrysler (both 11%), Honda (10%), and Subaru (6.6%).
“Auto consumers continue to benefit from available incentives and credit levels. Although OEM incentives growth has diminished, deals remain plentiful,” said Chris Hopson, manager of the North America light vehicle sales forecast for IHS Markit. “Additionally, interest rates are not expected to meaningfully rise through the end of the year. Therefore, consumers looking for a new vehicle are still being presented with a fruitful environment.”
Read: Detroit, Japan Factories Suffer in Short September Sales Report
Originally posted on Auto Dealer Today
More Showroom
California Sees Quarterly Gains
California’s new-vehicle market saw a boost in hybrids in the third quarter and its first overall quarterly market gain of the year.
Read More →
New-Vehicle Prices Stay Put
Affordability pressures and model availability shaped new-vehicle sales in September, according to an analysis by Kelley Blue Book.
Read More →
EV Buyer Consideration Shifts
What drives American consumers to purchase an electric vehicle is shifting as the question moves away from Should I?' to 'Which features and experience do I want to have?'
Read More →
Year-to-Date Auto Sales Holding Their Own
A forecast through August shows that automakers have shifted strategies to keep deliveries and revenues up despite tariffs and other economic challenges.
Read More →
Slow to Robo
Ten years of polling consumers shows autonomous vehicles’ profiles have risen considerably, but even more people now want at least some level of control if they go that route.
Read More →
Dealers a Little Down
A third-quarter Cox Automotive survey finds them in a mixed mood, bummed by fallen customer traffic but encouraged by better profits, costs and EV interest.
Read More →
European EV Sales Skyrocket
The EV market on the continent held strong in July with almost 25% of new-car sales being fully electric units, a stark contrast to the U.S., where EV sales declined about 42%.
Read More →
Mitsubishi Unveils U.S. Plan
The automaker announced a strategy that includes an expanded lineup and dealership presence, along with more ‘rugged’ and electric models.
Read More →
Used Lots Getting the Business
Many consumers are seeking out the units to save money, and the demand – higher in July than normal – is keeping supply limited and prices up.
Read More →
Used Market Stabilizes
The Carfax Used Car Index noted a major drop in used-vehicle price increases in July after several months of hikes.
Read More →