Automotive manufacturers reported a marginal 0.4 percent rise in U.S. sales in July over the same month in 2015, increasing concerns that the market is waning after six consecutive years of gains.
According to Kelley Blue Book analyst Akshay Anand, industry sales are plateauing as demand for SUVs slows down and sedans struggle to appeal to buyers. “With incentives continuing to rise faster than average transaction prices, combined with slowing growth, the industry is in a tricky spot,” he noted.
A survey of analysts conducted by Bloomberg projected a seasonally adjusted annual selling rate for the month at 17.6 million cars and light trucks, virtually identical to the 17.55 million rate in July 2015 and up from 16.68 million from the rated posted in June.
During the month of July, TrueCar estimates that the average price of a new light vehicle was $32,518, a 1.3 percent increase over the same period last year. Average incentives also increased, up $159 per vehicle to $3,225.
Highlights of sales for the month of July include:
- General Motors reported a 2 percent drop in sales to 267,258 vehicles
- Ford Motor Co sales were down 3 percent to 216,479 units
- Toyota Motor Sales slipped 1.4 percent to 214,233 vehicles
- Fiat Chrysler Automobiles posted a 0.3 percent increase in sales to 180,727 vehicles
- American Honda registered a 4.4 rise in sales to a July record of 139,125 vehicles
- Hyundai sales set a July record, up 5.6 percent to 75,003 units
- Kia posted a 5.6 increase in sales to a July record of 59,969 deliveries
- Volkswagen Group of America reported an 8.1 percent drop in sales to 28,758 units