ARLINGTON, Va.—Total vehicle sales in July rebounded from June’s rate of 16.7 million annualized units to 17.9 million, fueled by sales of trucks and SUVs as gasoline prices declined, NAFCU reported.
In the trade association’s latest Macro Data Flash Report, Research Assistant Yun Cohen, analyzing data published by Autodata Corp., added that overseas manufacturers made up for a slump in sales from U.S. carmakers. Vehicle sales levels in July were up 1.7% from a year ago.
Also in July, car sales increased from June’s 6.8 million annualized units to 7.1 million annualized units; sales of light trucks rose from 9.9 million annualized units to 10.8 million annualized units, NAFCU said.
“Despite the gains,” Cohen said, “there are signs that sales growth is slowing as pent-up demand from the recession diminishes. Incentives spending continues to increase at a faster pace than transaction prices as carmakers try to maintain the current sales level.”
Three of the six largest automakers reported increases in their year-over-year sales numbers. Honda reported the strongest gain in sales with 4.4%, followed by Fiat Chrysler Automobiles (1.5%) and Nissan (1.2%). Ford reported the largest decline in sales with -3%, followed by General Motor (-1.9%) and Toyota (-1.4%), NAFCU stated.
According to a recent Federal Reserve survey, Cohen noted, auto lending standards are starting to tighten for the first time since 2011. “Overall, sales appear to have plateaued and further volume increases are unlikely,” she said.
Recently, Ford Motor Co., the no. 2 U.S. automaker, said during an earnings call with analysts that it believes the record years of auto sales are over.
"We are seeing signs of a maturing U.S. recovery," Ford CEO Mark Fields told analysts during the call.