New Vehicle Sales Expected to Jump 12%
IRVINE, Calif. -- Sales of new vehicles are expected to improve 11.7% this month to 1.22 million units, say the editors of Keley Blue Book. This follows the first year-over-year decline in 27 months in September.
Helping sales, this October has one more selling day than last year, and in 2012, numbers were heavily affected by Hurricane Sandy's impact on the East Coast, says Kelley Blue Book.
Barring another economic setback, industry sales remain on track to reach about 15.6 million units this year.
Highlights for this month’s projected sales:
- Sales of new light-vehicles, including fleet sales, are expected to hit 1.22 million units, up 11.7% from October 2012 and 7.4% from last month.
- The seasonally adjusted annual rate for October is 15.4 million, up from 14.3 million in October 2012 and 15.2 million last month.
- Retail sales should account for 84% of sales.
Most manufacturers will enjoy healthy sales growth in October, the report notes. Toyota, whose Camry and all-new Corolla topped the mid-size and compact car segments last month, could post the greatest improvement from last year at 15.9%.
Ford is also expected to report excellent sales results this month, results driven largely by the demand for its F-Series plus the recently redesigned Fusion and Escape. Chrysler, Honda and Nissan are expected to post double-digit gains, largely on the heels of new redesigns and introductions such as the Jeep Cherokee, Honda Accord and Nissan Altima.
"The government shutdown didn't impact consumers growing appetite for buying new vehicles," said Alec Gutierrez, senior analyst for Kelley Blue Book, in a prepared statement. "The expectations were that car buyers would wait on the sidelines, but because of pent-up demand and credit availability, car sales are expected to increase 7% from last month."
Continuing a trend, sales of compact crossovers should have the biggest improvement this month, with an expected gain of more than 25%. "Consumers are drawn to the new models in the crossover segment, which feature increasingly efficient engines, yet have more cargo space and a higher ride height than their car counterparts," Gutierrez noted. "Meanwhile, after many months of 20% gains this year, the full-size pickup truck market is showing signs of slightly slower growth."
Although General Motors has its new Chevrolet Silverado and GMC Sierra on the market, the impact of a recent incresae of $1,500 in the manufacturer's suggested retail price on these trucks is unclear, Gutierrez said. Although the growth in the pickup truck sales appears to be slowing, sales heated up in the fourth quarter of 2012, so year-over-year comparisons are premature.
Published by The Business Journal, Youngstown, Ohio.
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