U.S. Auto Sales Expected to Rise
Three major automotive indicators all agree, U.S. auto sales should see double-digit gains in August. The gains are going to be led by Toyota’s and Honda’s resurgence and more fuel-efficient car sales.
According to a story in the Detroit News, TrueCar.com, J.D. Power & Associates and Kelley Blue Book expect light-vehicle sales to rise between 16 and 19 percent. For the month, total light-vehicle says should top 1.25 million. This sales volume should boost annual sales to around 14.2 million, up 14.1 million.
“The strength in August light-vehicle sales takes some of the pressure off expectations for the balance of the year, but a high level of risk lingers,” Jeff Schuster, senior vice president of forecasting at LMC Automotive, said in a statement. “We expect the current seesawing in auto sales to continue for the foreseeable future, but the overall picture in 2012 remains positive.”
This news coincides with other economic indicators that say the economy is growing. For the first time since June, 2010, home values and home sales are on the rise. These indicators often correlate with automotive sales. Plus, recent reports say that the economy has grown 1.7 percent so far this year.
As expected, both Toyota and Honda are expected to have over inflated gains versus 2011 when both were experiencing parts and inventory shortages. With more inventory in stock and a re-surging economy, both automakers are seeing a boom in total sales.
With fuel-efficient vehicles leading the way, trucks sales will probably see a marginal increase. The reality is that for full-size trucks sales to boom, they simply have to offer more mpgs probably through some type of hybrid engine combination.
Unfortunately for consumers, more vehicle sales mean less incentives. Who is impacted more by less incentives? The Ford F-150, Dodge Ram, Chevy Silverado or Toyota Tundra? What do you think?
Filed Under: Auto News