Light Vehicle Sales Top 17-Million Mark Again

Although the pace has slowed, light vehicle sales have retained recent momentum. In June, sales were up by 1.5% over the year to 17.1 million units (seasonally adjusted annualized rate). This marked the third time in four months that sales tipped 17-million units. On a per unit volume level, 1.47 million light vehicles were sold last month, an increase of 3.9% compared with the same period last year.

Total passenger car sales, including foreign and domestic models, declined by 6.1% over the year to 7.6 million units.

• Sales of domestic autos were down by 4.1% over the year to 5.6 million units
• Foreign auto sales fell by 11.2% to 2.0 million units
• Compared with May, total passenger car sales were off by 4.0%

Unlike passenger car sales, demand for light trucks, SUVs and crossover utility vehicles has been much more consistent. Sales increased by 8.5% over the year to 9.5 million units and accounted for 55.7% of the light vehicle sales mix.

• Sales of domestic trucks increased by 5.1% over the year to 7.8 million units
• Foreign light truck sales, which comprise only about 20% of the light truck market, were up by 26.7% to 1.8 million units
• Compared with May, sales of light trucks slipped by 3.0%

Sales of medium-heavy trucks jumped by 14.8% over the year in June and by 4.2% over the month. Since these are vehicles used by firms to haul freight and make deliveries, an increase in sales of these larger trucks is an indication of stronger business activity.

As vehicle sales began to reach pre-recession levels it was expected that the rate of growth would slow. Although this is what we are seeing now, sales continue to be robust. Supported by job growth, relatively low fuel prices, access to credit and improving consumer sentiment, momentum is expected to continue through the rest remainder of 2015.

Source:  www.bea.gov