Auto Sales to Improve in May - Analyst Blog
June 01 2012 - 12:00PM
Zacks
Auto sales in the U.S. are likely to improve significantly in
May based on revival in demand, favorable credits and higher
incentives. According to automotive information website
Edmunds.com, total sales are expected to jump 31.1% to 1,391,163
vehicles in the month from last year. The website believes that the
major automakers are likely to post double-digit growth in
sales.
In the past few months, U.S. auto sales continued to be positively affected by strong
pent-up demand with the average age of vehicles on the roads
being 11 years. The automakers are increasing the incentive
spending in order to boost sales further. In May, average incentive
spending was $2,135 per vehicle, up 3.9% from April and 0.6% from
May 2011.
Edmunds.com expects Toyota Motor Corp. (TM),
Chrysler and Honda Motor Co. (HMC) to achieve
market share gains while Ford Motor Co. (F),
General Motors Company (GM) and Nissan
Motor Co. (NSANY) will occupy the rest of the market
during the month.
In April, U.S. saw a sluggish 2.3% growth in light vehicle sales
to 1.18 million units from 1.16 million units in the same month
last year. Meanwhile, it rose 9.5% to seasonally adjusted annual
rate (SAAR) of 14.42 million units from 13.17 million units in
April 2011.
The sluggish growth was attributable to lower sales recorded by
the two big players in the industry – GM and Ford – and fewer selling days (due
to more Sundays than April last year). But thanks to the
fuel-efficient lineups and pent up demand that kept the auto sales
recovery on track.
FORD MOTOR CO (F): Free Stock Analysis Report
GENERAL MOTORS (GM): Free Stock Analysis Report
HONDA MOTOR (HMC): Free Stock Analysis Report
NISSAN ADR (NSANY): Free Stock Analysis Report
TOYOTA MOTOR CP (TM): Free Stock Analysis Report
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