U.S. Light Vehicle Sales Set New Record

The U.S. economy as a whole may have had a so-so year in 2015, but the automotive industry had reason to celebrate, setting a new sales record with 17.47 million vehicles sold (the previous record was 17.35 million set in 2000) and posting six straight years of year-over-year sales gains.

In December, U.S. light vehicle sales were up by 2.5% to 17.7 million units (seasonally adjusted annualized rate). During the previous three months, the pace of sales exceeded 18 million units (also a record).  For all of 2015, sales were up by 5.4% compared with 2014.

Throughout 2015, U.S. auto sales were dominated by demand for light trucks, SUVs and crossover utility vehicles (a vehicle built on a car platform that combines design elements and features of an SUV). Sales increased by 12.5% over the year in December to 10.1 million units and accounted for 58.5% of the sales mix, the highest since peaking at 61% in June of 2005.

• Sales of domestic trucks increased by 5.5% over the year to 8.1 million units
• Foreign light truck sales, which account for 20% of the U.S. light truck market, surged by 53.9% to 2.0 million units
• Compared with November, sales of pick-ups, SUVs and CUVs fell by 4.6%

Total passenger car sales, including foreign and domestic models, declined by 9.0% over the year to 7.1 million units. Sales of passenger cars were down in nine of the past 12 months on a year-over-year basis.

• Sales of domestic autos declined by 6.5% over the year to 5.4 million units
• Sales of foreign passenger cars plunged by 16.0% to 1.8 million units
• Compared with November, total passenger car sales were down by 5.2%

Sales of medium-heavy trucks, which are typically used by businesses for hauling freight and making deliveries, rose by 4.8% over the year in December to 440,000 vehicles. 

In spite of a year rocked by major recalls (Volkswagen, Takata air bags, GM ignition switches), the U.S. auto industry welcomed the new year with plenty of momentum at its back. Last year’s record sales were supported by a solid economy, historic low interest rates and more confident consumers.  Looking ahead, 2016 will likely be another good, if not quite as robust, year for the industry. Interest rates will increase, but job and income growth along with more optimistic consumers should deliver sales of 17.5 to 18.0 million units.

Source:  www.bea.gov