U.S. Light Vehicle Sales Strong and Steady

U.S. Light Vehicle Sales Strong and Steady

In October, U.S. light vehicle sales were up by 10.1% over the year to 18.1 million units (seasonally adjusted annualized rate). This marked only the second time on record auto sales have recorded two consecutive months with an SAAR north of 18 million units. On a per unit volume basis, 1.45 million light vehicles were sold last month, an impressive increase of 13.6% over the month, making it the highest October volume on record.

Demand is still solidly on the side of light trucks, especially crossover utility vehicles. Sales increased by 18.6% over the year in October to 10.4 million units and accounted for 57.2% of the light vehicle sales mix.

• Sales of domestic trucks increased by 12.6% over the year to 8.3 million units
• Foreign light truck sales, which currently account for slightly less than 20% of the light truck market, surged by 51.1% to 2.0 million units
• Compared with September, however, sales of pick-ups, SUVs and crossovers edged down by 0.5%.

Total passenger car sales, including foreign and domestic models, edged up by 0.5% over the year to 7.8 million units.

• Sales of domestic autos were up by 1.3% over the year to 5.8 million units
• Sales of foreign passenger cars declined by 1.7% to 1.9 million units
• Compared with September, total passenger car sales moved higher by a modest 1.5%

Sales of medium-heavy trucks rose by 13.4% over the year in October to 483,000 vehicles. Since these heavier trucks are commonly used by business to haul freight and make deliveries, an increase in demand for these vehicles is an indication of stronger business activity.

Even though the pace of sales in September and October was exceptionally robust, there is little indication sales will slow dramatically during the final two months of 2015. Most automakers posted double-digit sales gains last month led by Subaru (up 20.0%) and GM (up 15.9%).  Even VW, in the midst of an emission scandal and a stop-sale order on specific models posted a 5.6% gain for the month.  At the risk of being repetitive, U.S. auto manufacturers have been riding high on a wave of credit availability, lower gasoline prices, increasing levels of leasing activity and positive (mostly) economic news. 

Source:  www.bea.gov