March Auto Sales Best in Six Years - Analyst Blog
April 05 2013 - 9:00AM
Zacks
Auto sales in the U.S. rose by 3.4% year-over-year to 1.45
million vehicles in March, the best monthly sales in almost six
years. This translated into a seasonally adjusted rate (SAAR) of
15.27 million units for the year, up about 8.0% from 14.14 million
units in the same month of 2012. Better construction market, cheap
financing, strong pent-up demand and improving consumer confidence
continue to fuel sales growth.
All the six major automakers posted a single-digit rise in sales
during the month. Among them, Honda Motor Co.
(HMC) topped in terms of sales growth. Let us take a look at the
numbers posted by these automakers.
U.S. Automakers
Ford Motor Co. (F) sales rose 5.7% to 235,643
vehicles, driven mainly by the impressive sales of its revamped
Fusion sedan and Escape SUV. Fusion sales grew 6% while Escape
sales soared 28% during the month.
General Motors Company (GM) posted a 6.4% rise in
sales to 245,950 vehicles in March, driven by strong sales of its
Chevrolet Silverado pickup truck with an 8.4% increase. Notably,
sales of its Chevy Traverse crossover SUV surged 55% to nearly
11,000 units.
Chrysler Group – controlled by Italy’s Fiat SpA
(FIATY) – recorded a 5.0% rise in sales to 171,606 vehicles. The
automaker’s sales were mainly boosted by recovering pickup truck
sales during the month. Ram pickup was the hot selling model in the
month with a 25% increase.
Japanese Automakers
Toyota Motor Corp. (TM) sales edged up 1.0% to
205,342 units due to poor Toyota division sales. Lexus sales
escalated 15.1% while sales of Camry and Prius models declined in
the month.
Honda Motor recorded a 7.1% rise in sales to 136,038 vehicles after
reporting a drop in the previous month. The company’s sales were
mainly boosted by a 30% increase in sales of redesigned Accord
midsize sedan.
Nissan Motor Co. (NSANY) posted a meager 1.0% rise
in sales to 137,726 vehicles. Nissan Division saw its highest
volume ever, delivering 126,623 vehicles, up 0.4% from the prior
year. Infiniti deliveries went up 9.0% to 11,103 units in the
month.
Other Automakers
Among the other automakers, sales of Volkswagen AG
(VLKAY) inched up 3.1% to 37,704 vehicles. Sales of its Audi
luxury-brand grew 14.4% to 13,253 vehicles. Meanwhile, Korean
automaker Hyundai Motor Co.’s sales dipped 2.0% to 68,306 vehicles
in the month.
Outlook
Strong pent-up demand, easier car finance and improving
macroeconomic conditions will continue to act as a catalyst to
rejuvenate U.S. auto sales to the pre-recession level. Good news is
that improving auto sales will also help the overall economic
recovery in the U.S. being a key industry for growth. Full year
sales are expected to exceed 15 million units compared with 14.5
million units in 2012.
GM expects a 7% rise in industry sales in 2013. Meanwhile, Ford
predicted an 8% gain in the year, which reflects more than a
threefold rise compared with the overall economic growth of 2%–2.5%
forecast by the automaker.
FORD MOTOR CO (F): Free Stock Analysis Report
FIAT SPA (FIATY): 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
VOLKSWAGEN-ADR (VLKAY): Get Free Report
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