U.S. light-vehicle sales dropped 3.5% year over year to 1.51 million units in Aug 2016, per Autodata. This is the third month of a sales decline this year. Moreover, sales on a seasonally adjusted annualized rate (“SAAR”) basis declined to 16.97 million units in the month from 17.86 million units in Jul 2016 and 17.79 million units in Aug 2015. Product segments like trucks and utility vehicles continued to record strong sales.
General Motors Company GM was the leader in terms of sales volume for Aug 2016. Among the six major American and Japanese automakers, FCA US was the only one to record year-over-year sales improvement last month.
Now, let us take a look at the U.S. sales figures reported by individual automakers.
U.S. Automakers
General Motors recorded 256,429 vehicle sales in August, marking a 5.2% year-over-year decrease. Retail sales fell 5.4% to 212,915 units.
Ford Motor Co. F reported an 8.4% decrease in U.S. sales from the year-ago period to 214,482 vehicles in Aug 2016. Sales volume of the Lincoln brand vehicles advanced 7% year over year to 9,243 units in the month. Sales of the Ford brand declined 9% year over year to 205,239 vehicles.
FCA US LLC – controlled by Fiat Chrysler Automobiles FCAU – recorded a 3% year-over-year rise in sales to 196,756 vehicles in Aug 2016.
Japanese Automakers
Toyota Motor Corporation’s TM sales dropped 5% year over year to 213,125 units in Aug 2016. Sales at the Toyota division declined 4.6% to 182,187 units. Lexus’ sales fell 7.6% to 30,938 units.
Honda Motor Co., Ltd. HMC recorded a 3.8% year-over-year decrease in sales to 149,571 vehicles in the month. Sales in the Honda Division dropped 3.5% to 135,325 units. Further, sales of the Acura Division fell 7% to 14,246 vehicles.
Nissan Motor Co. Ltd. NSANY reported a 6.5% year-over-year decline in sales to 124,638 vehicles in August. Sales in the Nissan division slipped 6.9% to 114,199 units, while sales of the Infiniti Division fell 1.8% to 10,439 units.
Outlook
Many analysts believe that U.S. auto sales are reaching a plateau. While sales are expected to remain strong in the second half of 2016, it is not certain if annual sales will be able to surpass the record levels achieved in 2015.
Nevertheless, the U.S. auto sector looks set for a good year, with sales already reaching 11.67 million units in the first eight months. High employment levels, rising personal income, low fuel prices and easy availability of credit are some factors that have been driving sales. Moreover, the high average age of cars on the U.S. roads should continue to boost replacement demand for cars. However, the pressure to maintain the attractive incentives and deals may strain the margins for automakers.
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