New Vehicle Sales Projected to Climb 9%
IRVINE, Calif. -- Sales of new vehicles are expected to increase 9.1% year-over-year to 1.24 million units, resulting in a project adjusted annual rate of 16.4 million seasonally adjusted.
Based on the robust sales pace of the last few months, Kelley Blue Book is adjusting its sales outlook for 2014 upward by 100,000 to 16.4 million.
"Following an extraordinarily strong month of sales in August, with the industry above 17 million [seasonally adjusted annual rate] for the first time in eight years, Kelley Blue Book expects sales to level out in September," said Alec Gutierrez, senior analyst for Kelley Blue Book, in a prepared statement.
"Sales will remain strong and show healthy year-over-year improvement. Rising incentive spending in recent months has been more than offset by increasing retail transaction prices, signaling continued consumer demand."
Highlights of the projected September sales forecast include:
- New light-vehicle sales, including fleet, will hit 1.24 million units, up 9.1% from September 2013 but down 21.7% from August 2014.
- The seasonally adjusted annual rate will be 16.4 million, up from 15.3 million in September 2013 and down from 17.4 million in August 2014.
- Retail sales are expected to account for 85% of volume.
Chrysler Group continues its reign with an anticipated volume increase of 17%, marking its seventh month of double-digit growth this year. Chrysler is benefiting from its Jeep and Ram brands, which have pushed its market share up a full point this year, its highest since 2007.
With the benefit of an extra selling day, big gains are expected for many manufacturers. One exception could be Ford, which could see a decline in F-Series sales as dealers manage inventory in preparation for the launch of the all-new F-Series.
The compact-utility segment will continue its success with an expected volume increase of 19%.
This month has 24 sales days compared to 23 sales days in September 2013. All percentages are based on raw volume, not daily selling rate.
Published by The Business Journal, Youngstown, Ohio.
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