U.S. light-vehicle sales increased 3.9% year over year to 1.48 million units in Jun 2015. Also, sales improved 4.4% year over year to 8.52 million units in the first half of 2015. This is the highest first-half sales results since 2005.
Sales on a seasonally adjusted annualized rate (“SAAR”) basis declined to 17.16 million units in Jun 2015 from 17.78 million units in May 2015. However, the SAAR improved from 16.91 million units in Jun 2014.
The impressive sales volume was driven by strong demand for light trucks, crossovers and SUVs. These vehicle segments have been gaining from low gas price as well as the easy availability of credit with lower interest rates and longer repayment periods.
Among the six major American and Japanese automakers, Nissan Motor Co. Ltd. NSANY recorded the maximum year-over-year improvement in Jun 2015. Meanwhile, General Motors Company GM led in absolute figures for the month.
Now, let us look at the U.S. sales figures reported by individual automakers.
U.S. Automakers
General Motors recorded 259,353 vehicle sales in June, marking a 3% year-over-year decline. However, retail sales improved 7%, while commercial deliveries were up 4%. This is the company’s best June retail sales since 2007.
Ford Motor Co. F reported a 2% increase in U.S. sales from the year-ago period to 225,647 vehicles in Jun 2015. Sales volume of the Lincoln brand vehicles improved 14.5% year over year to 8,326 units in the month.
FCA US LLC (formerly Chrysler Group) – controlled by Fiat Chrysler Automobiles FCAU – recorded an 8% year-over-year rise in sales to 185,035 vehicles in Jun 2015. With this, the company’s monthly sales have increased year over year for 63 consecutive months. This impressive feat also marks the best June sales for the group since 2006.
Japanese Automakers
Toyota Motor Corporation’s TM sales went up 4.1% year over year to 209,912 units in Jun 2015. The increase was due to one extra selling day in Jun 2015 compared with Jun 2014. Adjusting for this, sales declined 0.1% on a daily selling rate (“DSR”) basis. Sales in the Toyota division improved 3.1% on volume basis, but dropped 1% on DSR basis to 183,791 units. Lexus’ sales rose 11.1% on volume basis and 6.6% on DSR basis to 26,121 units.
Honda Motor Co., Ltd. HMC recorded a 4.2% year-over-year rise in sales on volume basis to 134,397 vehicles in the month. On DSR basis, results were in line with the year-ago period. Sales of cars amounted to 61,203 units in June, while sales of trucks were 57,667 units.
Nissan Motor Co. Ltd. NSANY reported a 13.3% year-over-year increase in sales to 124,228 vehicles in June. Sales in the Nissan division also improved 13% to 114,243 units. Moreover, sales of the Infiniti Division surged 16.5% to 9,985 units.
Outlook
Automakers are gaining from low fuel prices and interest rates, rising wages and household wealth, and improving job security. Further, ongoing recovery in the U.S. economy is leading to an improvement in consumer confidence.
Automakers are also aiming to increase market share by offering large incentives and discounts to customers. Additionally, banks are offering more car loans with lower interest rates and longer repayment periods.
Further, the high average age of cars on the U.S. roads is resulting in high replacement demand for cars as well as car parts. All these factors are working in favor of auto sales in the U.S. As the automobile industry is a major contributor to U.S. economic growth, improving auto sales should help in the recovery of the overall U.S. economy.
The outlook for long-term auto sales remains positive due to improving macroeconomic factors, residual pent-up demand, attractive deals and vehicle launches. U.S. light-vehicle sales look set to drive past the 17 million mark in 2015.
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