U.S. light-vehicle sales went up 1.2% year over year to 1.3 million units in Nov 2015. Most automakers reported sales growth although sales volume in Nov 2014 was quite strong and there were two less selling days in Nov 2015 compared to Nov 2014. Attractive holiday deals played an important role in boosting sales. The sales volume was also driven by low gas price, high demand for light trucks as well as the easy availability of credit with lower interest rates.
Among the six major American and Japanese automakers, Nissan Motor Co. Ltd. NSANY recorded the maximum year-over-year sales improvement in Nov 2015. Meanwhile, General Motors Company GM led in absolute figures for the month.
Now, let us take a look at the U.S. sales figures reported by individual automakers.
U.S. Automakers
General Motors recorded 229,296 vehicle sales in November, marking a 2% year-over-year increase. Further, retail sales improved 4%. Meanwhile, commercial deliveries rose 6%, but fleet sales were down 9%.
Ford Motor Co. F reported a 0.4% increase in U.S. sales from the year-ago period to 187,794 vehicles in Nov 2015. Sales volume of the Lincoln brand vehicles fell 2.4% year over year to 7,918 units in the month. Sales of the Ford brand inched up 0.6% year over year to 179,876 vehicles.
FCA US LLC (formerly Chrysler Group) – controlled by Fiat Chrysler Automobiles FCAU – recorded a 3% year-over-year rise in sales to 175,974 vehicles in Nov 2015. With this, the company’s monthly sales have increased year over year for 68 consecutive months. This impressive feat also marks the best November sales for the group since 2000.
Japanese Automakers
Toyota Motor Corporation’s TM sales went up 3.4% year over year to 189,517 units in Nov 2015. Sales in the Toyota division rose 2.8% to 160,177 units. Lexus’ sales increased 6.8% to 29,340 units.
Honda Motor Co., Ltd. HMC recorded a 5.2% year-over-year decline in sales on volume basis to 115,441 vehicles in the month. Sales of cars amounted to 58,361 units in November, while sales of trucks were 57,080 units.
Nissan reported a 3.8% year-over-year increase in sales to 107,083 vehicles in November. Sales in the Nissan division also went up 3.9% to 95,389 units. Further, sales of the Infiniti Division improved 2.6% to 11,694 units.
Outlook
Low fuel prices and interest rates, rising wages and household wealth, improving job security and employment rate, along with the easy availability of car loans with lower interest rates and longer repayment periods, are helping boost car sales in the U.S. Further, the ongoing recovery in the economy is leading to increased consumer confidence. Automakers are also offering large incentives and discounts to enhance market share. Moreover, the high average age of cars on the U.S. roads is resulting in increased 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 aid the recovery of the overall U.S. economy.
The outlook for long-term auto sales remains positive, based on 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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