US Auto Sales April 2017 – Light Truck Sales Expansion Comes to a Halt

US auto sales fell 4.7% YoY to 1.42mil vehicles in April, as passenger car sales continued to drop at a double-digit pace (-11.1% YoY), while light truck sales were flat (-0.1% YoY) – it was the first time since September 2013 that monthly light truck sales did not increase on a YoY comparison. The numbers looked better when dsr-adjusted (April 2017 had one fewer selling day than April 2016), with total auto sales down 1% YoY and light truck sales up 3.8% YoY. Still, with SAAR of below 17mil for a second consecutive month (March: 16.62mil, April: 16.88mil), there is increasing concern among automakers that the 17mil TIV-mark might not be reached in 2017: A further heavy rise in incentives in April (+13.9% YoY according to auto data provider ALG, +13.7% YoY according to J.D. Power/LMC) without much of an impact suggests that the marginal utility of price concessions seems to be declining. Also, inventories continued to rise (73-day supply in April), despite automakers pledging to cut production and reduce their stock build-up. Stock markets didn’t take the numbers lightly, with General Motors (GM US) shares down 2.9%, Ford (F US) down 4.4% and Fiat Chrysler (FCAU US) down 4.3%. 
Analyst Julie Boote discusses key factors behind the performance of the Japanese makers. Included in the report is a table showing the performance for all automakers and a chart of SAAR trends.