US Auto Sales in March: SAAR Drops to the Lowest Level in 12 Months
US auto sales fell 1.6% YoY to 1.55mil vehicles in March, with SAAR falling to 16.62mil units, the lowest level since March 2016. The results were below expectations, as market observers predicted SAAR of about 17.2mil units and positive sales growth. Markets reacted negatively, with Ford, GM and FCA shares tumbling on the results.
Demand for light truck sales continued to rise (+5.2% YoY), while passenger car sales contracted 10.6% YoY. Automakers are currently performing a balancing act, trying to increase supply for popular light trucks, while limiting sales declines of passenger cars without letting incentives getting out of hand (although these were still up by 13% YoY, according to data provider ALG). Since total net sales declines remain moderate (YTD -1.5% YoY), there is no panic setting in yet; however, a trend of decelerating light truck sales growth combined with a more pronounced sales contraction for passenger cars is forming, suggesting a deteriorating performance ahead later this year.
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.
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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