NEW YORK–While U.S. auto sales increased 16.2% in August, one credit union economist sees some brake-tapping taking place, but also predicts a pretty smooth road ahead.
"The market has begun to exhibit faint signs of softening, including lower daily sell rates and higher daily fleet supply, but these are mostly attributable to larger pressures on consumption driven by rising interest rates as well as tightening credit conditions,” said NAFCU Economist Noah Yosif. “Augmented inventories have been critical for mitigating affordability concerns and sustaining overall demand in order for the market to realize continued growth, driven by an ongoing, aggressive boom in production that could soon exceed sales given rising consumption pressures.
“Under ordinary circumstances, excess supply driven by overproduction would be a considerable downside risk to the market, yet, against the backdrop of a tightening macroeconomic landscape, it could be an essential tailwind that keeps prices affordable and sustains current levels of demand,” Yosif added.
What the Data Reveal
According to the new data:
- U.S. new vehicle sales of 1,340,241 units for the month of August represented an increase of 2.0% from July 2023, and an increase of 16.2% from one year ago in August 2022 when supply chains continued to restrain production.
- August’s passenger car sales increased 12.5% to 279,789 units, resulting in a 20.9% market share, while SUV and truck sales increased 17.2% to 1,060,452 units, resulting in a 79.1% market share.
- Light vehicle seasonally adjusted annualized sales (SAAR) for August 2023 was 15.16 million units versus 13.40 million units one year ago.
- With vehicle inventories improved since a year ago, General Motors monthly sales rose 22.2%, Ford sales increased 2.0%, and Stellantis sales were up 4.7%.
- Tesla sales increased 33.7% from last August to 58,432 units, giving it a U.S. market share of 4.4%.
- EV startup Rivian sales were up 108.0% to 4,600 vehicles, Karma sales were down 82.4% to 3 units, Polestar sales were up 26.4% from the same month last year to 1,259 vehicles, Lucid Motors sales were up 163.4% to 598 units, and newcomer VinFast sold 394 vehicles in August.
The Top-Selling Models
The best-selling models in August 2023 were:
- 1. Ford F-Series (up 8.6% from August 2022)
- 2. Chevrolet Silverado (up 22.8%)
- 3. Toyota RAV4 (up 20.3%)
- 4. Ram pickup (down 6.9%)
- 5. Tesla Model Y (up 74.4%)
- 6. Honda CR-V (up 71.4%)
- 7. GMC Sierra (up 48.4%)
- 8. Toyota Corolla (up 53.1%)
- 9. Toyota Tacoma (down 3.7%)
- 10. Nissan Rogue (up 47.3%)
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