U.S. Light Vehicle Sales Slow in March

Light vehicle sales in March were up by 3.8% over the year to 17.1 million units (seasonally adjusted annualized rate), the slowest rate of growth since February 2014 when sales fell by 0.4%. On a per unit volume level, 1.54 million light vehicle were sold, an increase of slightly less than 1.0% compared with the same period last year. Still, the pace of sales in March was much better than the 16.2 million unit rate recorded in February.

Total passenger car sales, including foreign and domestic models, edged down by 1.0% to 7.5 million units. Sales of foreign models continued their downward trend. Since July of last year, declining sales of foreign made cars have partially or completely offset increases in sales of domestic models.

• Sales of domestic autos were flat over the year at 5.4 million units
• Foreign auto sales fell by 3.4% to 2.1 million units
• Compared with February, total passenger car sales rose by 6.9%, reversing three consecutive month-to-month declines.

Sales of light trucks, SUVs and crossover utility vehicles continue to dominate the market for light vehicles and, in spite of higher gasoline prices in March, the pace of sales is running ahead of  prerecession rates. Sales were up by 8.0% over the year to 9.6 million units and accounted for over 56% of the sale mix. 

• Sales of domestic trucks increased by 7.8% over the year to 8.0 million units 
• Foreign light truck sales, a much smaller segment of the U.S. truck and SUV market, rose by 8.6% over the year to 1.6 million units
• Compared with January, sales of light trucks were up by 4.5%

Sales of medium-heavy trucks, used primarily by businesses to haul freight and make deliveries, continue to be robust, rising by 15.0% over the year in March to 430,000 vehicles.

Part of the reason for the slowing pace of sales are regional weather effects – snow in some sections of the country lingered into March -- but the market may also be approaching a natural peak. Car and truck sales have grown at a blistering pace since the end of the recession and are now bumping up against prerecession levels. Growth rates are expected to level off this year as pent up demand from the recession is depleted. 

Source:  www.bea.gov