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While automakers couldn’t give away a car during March in the U.S. market, trucks and SUVs continued their seemingly relentless sales momentum. The market declined slightly – almost a rounding error from a year ago, however the sales pace remained strong due to strong demand for trucks and SUVs. So, what else is new?
AutoData says that the seasonally adjusted annual rate (SAAR) in February 2017 was 17.58 million units, versus 17.69 million units a year ago. Industry wide, 1,333,637 light vehicles were sold in February, up from 1,143,549 units in January, but down from 1,348,665 units in February 2016.
Unadjusted for business days, sales for all brands were down 1.1% from a year ago. Offshore brands as a group – helped by Toyota Camry and Honda Civic continuing to reside as always in the Top Ten sellers list – somewhat resisted the trend, rising 0.3% from a year ago.
There was a rout in car sales with an overall decline of -12.1%. The Detroit Three lead the car sales decline: at GM -21.9% Ford Motor -21.2%, FCA -30.8%. Other that fared badly in the dwindling market included: Honda -8%, Nissan -10.7%, Hyundai -5.5%Kia -8.5%, Porsche -18.9%.
“Inventory is starting to swell, which is concerning considering that we’re still months away from the peak summer selling season,” said Jessica Caldwell, Edmunds Executive Director of Industry Analysis. “Days to turn has reached its highest level since July of 2009, and new vehicle inventory was up 9% year-over-year in February. The automakers are in a tricky spot: aggressive incentives are already starting to eat into profits and residuals, but it takes discipline to pull back the production reins in what’s still a fairly strong market.”
Days to Turn in February
- Subcompact cars had a DTT of 102 days
- Large cars had a DTT of 86 days
- Mid-size cars had a DTT of 82 days
- Industry average was 74 days
Leasing
Leasing continues to push new car sales, but at a slower rate. Lease penetration was down 11% in February year-over-year. Edmunds predicts that lease penetration will decline overall in 2017 to 30%, compared to a record 32% in 2016.
Share
Detroit Three brands held 46% of the February U.S. auto market, with sales of 614,134 vehicles. Both figures were an increase over January when they held 45.6% of the auto market and sold 520,949 vehicles. Overall sales were down from February 2016 when the Three held 46.8% of the U.S. auto market and sold 631,065 vehicles.
Asian brands finished the month with 45.5% of the U.S. auto market, an increase from 45.1% in January and 45.4% in February 2016. Sales of 606,706 units were up from 515,914 in January, but a decrease from the 612,022 vehicles these brands sold in the same month last year.
European brands – most at risk under a Trump border tax – held an 8.5% share of the U.S. market in February, down from 9.3% in January, but up from 7.8% last February. They sold 112,797 units, up from 106,686 units in January with sales up 6.8% over the same month last year when they sold 105,578 units.
