U.S. Light Vehicle Sales Disappoint in April

Light vehicle sales in April were up by 3.1% over the year to 16.9 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, 1.45 million light vehicles were sold, an increase of 4.7% compared with the same period last year. On a month-to-month basis, sales were down by 3.5%.

Total passenger car sales, including foreign and domestic models, were down by 2.6% over the year to 7.2 million units.

• Sales of domestic autos were nearly flat over the year, edging up by just 0.5% to 5.2 million units
• Foreign auto sales plunged by 10.0% to 1.9 million units
• Compared with March, total passenger car sales fell by 4.5%. This was the third monthly decline for passenger vehicles

Light trucks, SUVs and crossover utility vehicles continue to dominate the market. Sales increased by 7.9% over the year to 9.3 million units and accounted for 56.5% of the light vehicle sales mix.

·        Sales of domestic trucks increased by 5.1% over the year to 7.7 million units

·        Foreign light truck sales, which comprise only about 20% of the light truck market, were up by 23.4% to 1.6 million units

·        Compared with March, sales of light trucks were down by 2.7%

Sales of medium-heavy trucks, used primarily by businesses to haul freight and make deliveries slowed down last month, rising by just 3.9% over the year in April to 430,000 vehicles.

Light vehicle production remains strong. The industry finished April with a 64-day supply of vehicles compared with 58 days in March but down from 68 days in April 2014. Dealer incentives and fleet sales have been stable, but individual demand is exhibiting some volatility. Still, light vehicle sales are projected to reach 16.9 million units this year matching prerecession volumes. 

Source:  www.bea.gov