ARLINGTON, Va.—Total vehicle sales decreased in February for the second consecutive month.
The slowdown was in part due to rising transaction prices and smaller discounts, NAFCU Research Assistant Yun Cohen said in a Macro Data Flash report.
"According to J.D. Power's estimates, average incentive spending declined year-over-year for the first time since 2013 as domestic manufacturers reduced their discounts on trucks and SUVs," Cohen said.
Autodata Corp. reported that total vehicle sales in February decreased to 17.08 million annualized units, down from January's rate of 17.16 million. Monthly sales levels were down 2.2% from a year ago.
"Vehicle sales currently face several headwinds including higher borrowing costs, tightening access to credit and waning replacement demands from last year's natural disasters," Cohen said. "In addition, recently proposed tariffs to steel and aluminum imports could potentially inflate vehicle prices and adversely affect sales."
Car sales decreased from 5.8 million annualized units to 5.7 million annualized units during February. Sales of light trucks were essentially unchanged from January. "Sales continue to shift from passenger cars to light trucks," Cohen said. "The latter now represents a record high of 66.5% of the market, while sales of the former are at the lowest level since 2011."
Five of the six largest automakers reported declines in their year-over-year sales numbers. General Motors' sales decreased 7% from last year, followed by Ford (-6.8%), Honda (-5%), Nissan (-4.3%) and Fiat Chrysler Automobiles (-1.4%). Toyota's sales were up 4.5% from last February.
The U.S. brand share of the total vehicle market was 44.6% in February, up from 42.6% in January. The share of domestically assembled vehicles increased from 77.8% to 78.3%.