ARLINGTON, Va.—Total vehicle sales declined slightly to a rate of 16.8 million annualized units in February. Of note, light trucks continued to dominate while auto sales struggled, NAFCU reported.
“Total unit sales have remained remarkably stable since 2015, but a shift from cheaper autos to more expensive light trucks has resulted in a large increase in average prices,” said NAFCU Chief Economist and Vice President of Research Curt Long. “The global effects of coronavirus are likely to have downwind effects on the auto market, including disrupting supply chains in Asia and keeping customers away from showrooms.
“NAFCU expects vehicle sales to dip slightly in Q2 and Q3 as the virus plays out with a rebound in Q4, though as with any virus-related forecasts, there is a high degree of uncertainty,” Long added.
Car and light trucks sales were both stagnant during the month, remaining at 4.3 million annualized units and 12.6 million annualized units, respectively.
Despite a slight dip, February’s sales were 1.9% higher than a year ago, Long noted.