New Light Vehicle Sales Remain Robust

New light-vehicle sales are showing no signs of slowing, with sales in September demonstrating continued strength with solid year-over-year growth, according to a monthly sales forecast.

New-vehicle retail sales in September 2014 are projected to come in at 1.0 million units, a 94,000-unit increase from September 2013 and 6 percent growth on a selling-day adjusted basis.

The retail seasonally adjusted annualized rate (SAAR) in September is expected to be 13.5 million units—which is 1.2 million units more than in September 2013—marking the seventh consecutive month in which the SAAR has exceeded 13 million units.

Retail transactions are considered the most accurate measure of true underlying consumer demand for new vehicles. The strong sales pace in September is noteworthy as it follows an exceptionally strong August when retail sales reached 1,378,588.

“Vehicle sales typically fall sharply immediately following the Labor Day holiday before recovering later in the month, but the decline this September has been smaller than in prior years,” said John Humphrey, senior vice president of the global automotive practice at J.D. Power.

The average new-vehicle retail transaction price in September is $30,100, the highest ever for the month and exceeding September 2013 by nearly $450.

Source: J.D. Power and LMC Automotive.

Category: General Update