PSA Autos: September US Auto Sales – Performance Lifted by Replacement Demand, Fleet Sales, Discounts
September US Auto Sales – Performance Lifted by Replacement Demand, Fleet Sales, Discounts
US auto sales rose by 6.1% YoY to 1.52mil units in September, with SAAR reaching 18.57mil units – the highest level since 2005. The first YoY sales increase this year was due to a combination of factors:
- Sept 2017 had one more selling day than Sept 2016, which means that DSR-adjusted sales rose by only 2% YoY
- Replacement demand following hurricanes Harvey and Irma supported the market, with much of the additional gain coming out of Texas, according to automakers. Replacement demand is likely to push up sales in Oct and Nov as well, given that hundreds of thousands of cars were damaged
- Fleet sales rose sharply for both GM (GM US) and Ford (F US), lifting the aggregate result
- Attractive Labour Day deals plus discounts for outgoing models got customers into the showrooms. Auto data provider Edmunds.com estimated that average incentives increased by 21% YoY in Sept.
Automakers welcomed the results; GM cited the overall strength of the US economy as the main force driving the market. We believe that this improvement is a blip in a longer-lasting downward trend.
We comment on the performance of the Japanese OEMs and provide a table showing the performance for all automakers and a chart of SAAR trends.
Founded in 2009, Pelham Smithers Associates (PSA) provides market intelligence on Asian technology, focusing in particular on Japan. The industries covered by our team of specialists are: consumer electronics, telecomms, pharmaceuticals, internet, electronic parts and materials, automotive technology, retail and capital goods.
PSA produces both company and sector reports. The focus of PSA’s research is to identify winners and losers as new technologies impact the top and bottom lines of corporations. Critical to our research is the clear explanation of how these new technologies work and how they impact companies and industries.
The founding partners have worked closely together for twenty years and the team has more than doubled in size since 2012.
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