In May, U.S. new light-vehicle car sales rose to 1.6 million, which holds the record for the highest sales month in 2014, so far. This is an increase of 11.2% as compared to May of 2013. The gains in the month of May were led by Mazda, Nissan, Toyota, Chrysler Group, BMW Group and General Motors with discounts and extended holiday deals drawing consumers to showrooms. The reported higher than expected U.S. new light-vehicle car sales reveals rising consumer confidence and demand being driven by a recovery of the U.S. economy.
May 2014 year-to-date light-vehicle sales amounted to 6.7 million units, up 4.8% from a year ago. The May 2014 seasonally adjusted annual rate (SAAR) for light-vehicle sales was 16.7 million. The last time the monthly SAAR value reached 16.7 million was February 2007. After a weak start to the year due to the cold and snowy weather, SAAR has topped 16 million.
May 2014 sales outperformed, by far, what analysts had predicted. Year-to-date sales percentage changes in May 2014, as compared to those in May 2013, has Mitsubishi leading the way with a sales increase of 34%. Subaru has impressive sales this year with an increase of 19%. Jaguar Land Rover and Nissan both have an increase of 14%. Coming in closely behind is Chrysler Group with 13%. Audi rose 11%. Daimler AG was up 8%. Mazda and Toyota Group each had a 6% sales increase. BMW Group rose 5%. Hyundai Group was up 4%. General Motor’s sales increased 3%, despite the recall problems that the company has been dealing with. Honda had a 0% sales increase, and Ford declined 1%. The worst two performing companies were Volkswagen which continued its decline down 12% and Volvo Cars NA which declined 10%.
General Motors held the largest share of the U.S. May 2014 year-to-date light-vehicle sales at 18%.
In regard to industry trends, for May 2014 year-to-date, 8 of the 15 best-selling light vehicle models were from the Asia/Pacific companies, while the rest were models from Detroit companies. Of all model types, the cross utility vehicle (CUV) held the largest share of the U.S. May 2014 year-to-date light vehicle sales at 26.7%, up from 24.8% last year. All segments, except for the middle car segment, experienced growth in May 2014 year-to-date sales from last year. The market share held by electric and plug-in hybrids have each grown since last year, while the sale of hybrids and light-vehicles powered by fuel cell technology and natural gas have each declined.
U.S. auto sales reached 16 million units a year from 1999 to 2007, peaking at 17.4 million in 2000, and remain on track to reach that level again in 2014, according to analysts. 2014 appears to be the year that auto dealers have been patiently waiting for.
If you have any questions in regard to this article, please contact Paul McGovern at 800-849-6022 or PMcGovern@DowneyCoCPA.com.
Sources: Automotive News Data Center and WardsAuto
