Posted on April 24, 2012, at 7:20 am
 Although April is considered a challenging month for sales comparisons because the Easter holiday falls in April some years and in March during other years, signs of sustained growth in the U.S. auto market are evident. In fact, the daily selling rate in April is projected to be 37,000 units, which is higher than the 34,000-unit average rate in the first quarter. (Note: There are 24 selling days in April 2012 vs. 27 in April a year ago.)
Retail sales volume this month is projected to increase 8%* from April 2011, which matches the first-quarter year-over-year increase of 8%. Sales in April are predicted to reach 894,100 units, which translates to a seasonally adjusted annual rate (SAAR) of 10.2 million units, based on the monthly sales forecast update from our Power Information Network® (PIN) and LMC Automotive.**
Total (retail and fleet) light-vehicle deliveries for the month are forecast to reach 1.13 million units, which is up 11% when adjusted for the number of selling days, from 1.15 million units in April 2011. This pace is equal to a SAAR of 13.8 million units vs. 13.2 million a year ago. Higher fleet sales continue in April, with fleet volume expected to account for 21% of total sales this month. Continue reading ›
Posted on April 18, 2012, at 10:14 am
 The first-quarter of 2012 ended on a strong note for automakers in the U.S. market despite higher gas prices, which began to drop slightly in the past week and in spite of the negative influence of still high unemployment rates. On a seasonally adjusted annual selling basis, the first-quarter selling rate, or SAAR, averaged 11.7 million units for retail and 14.5 million units for total light vehicles—a tempo that was ahead of our earlier retail and total sales forecast.
In fact, the selling pace in the first three months of 2012 outperformed the J.D. Power annual sales forecast for the first time since 2008, when the auto market began slipping into recession, according to Jeff Schuster, senior vice president of forecasting at LMC Automotive.*
Fiat-Chrysler and VW Groups Make First-Quarter Sales Headlines
Two multi-franchise automakers, Fiat-Chrysler and Volkswagen Groups, achieved stellar double-digit sales and share gains in the first quarter of 2012 vs. their results in the same 3-month period a year ago. In addition, two of the four smaller independents, Fuji Heavy Industries’ Subaru brand and Mazda, also posted robust, double-digit year-over-year gains vs. the same period in 2011. Continue reading ›
Posted on April 16, 2012, at 2:00 am
 Tim Dunne Luxury brand automakers and dealers operating in China—who discovered their own metaphorical gold mine in the country’s automotive market these past few years—may be starting to find mining their mother lode has become more difficult.
According to LMC Automotive*, sales of luxury vehicles in China have, on a percentage basis, grown faster than the total market in China during the past few years, with 2011’s luxury-vehicle sales totaling nearly 600,000 vehicles, up 30% compared to a year earlier (and much higher than the total industry growth rate of 10% in 2011). A booming economy, rapid individual wealth creation, and a relative dearth of luxury-vehicle inventory from which to choose have created an enviable vehicle seller’s market in China. Dealer gross profit margins on a single vehicle frequently range from US$10,000-US$30,000, according to J.D. Power research. Continue reading ›
Posted on April 13, 2012, at 2:00 am
 Mohit Arora Surinder Singh (a fictitious name) currently drives a BMW 3 Series, is the male head of household and earns anywhere from Rs 1 lakh to Rs 5 lakhs (US $1,954 to US $9,770) or…infinity. This is the typical profile of a luxury new-car buyer from our 2011 India Sales Satisfaction Index (SSI) Study.SM
In March 2012, India’s Finance Minister Pranab Mukherjee announced a hike in the basic customs tax on luxury cars. Large cars (excluding imported models) over 4 meters in length and with engine size larger than 1.5L are subject to a new excise duty of 27%—up from 22% + Rs 15,000 (US $293) of the fixed duty. This means that luxury vehicles are set to become more expensive in India—by up to Rs 3 lakhs (US $5,748)—as automakers are compelled to pass on the additional burden to consumers.
Given the substantial increase in cost to the consumer, the question to consider is: Will the price hike deter buyers like Mr. Singh from making a luxury car purchase in the future? Continue reading ›
Posted on April 12, 2012, at 2:00 am
Matthew Racho
We expect this alliance to have a very positive effect for dealers, manufacturers, and our industry. The alliance will allow for increased dealer participation across the U.S., providing deeper penetration into retail transactions across all markets, and enabling more extensive regional and local market analysis.
With over 20 years’ experience . . . Continue Reading Alliance with NADA Provides Key Benefits for Dealers and Automakers
Posted on April 11, 2012, at 5:00 am
 David Sargent The global automotive spotlight was shining brightly on the dozens of new model debuts and more than 1,000 vehicles on display earlier this month at the New York International Auto Show. While some of the vehicles shown in New York had already debuted at previous shows in Los Angeles, Detroit or Geneva, Switzerland, many were seen for the first time by the public.
There was an overall buzz at the Javits Center in New York City about the auto industry rebounding to sales levels last seen before the financial crisis of 2008. J.D. Power’s forecasting alliance partner LMC Automotive expects global light-vehicle sales to increase to 79.2 million in 2012, a 5% increase from 2011. All major regions are expected to post stronger sales in 2012, compared with 2011.
Japan is expected to see strong growth with sales of 4.8 million, up 16% from 2011. Sales in India are expected to reach 3.2 million in 2012, up 11% from 2011, while China’s sales are expected to increase 9% to 19.7 million. Brazil’s sales are expected to grow 1% in 2012 to 3.5 million. In addition, LMC Automotive expects 14.1 million new light vehicles to be sold in the U.S. this year. Continue reading ›
Posted on April 9, 2012, at 6:00 am
 Tim Dunne The continuation of higher gas prices in the U.S.—averaging $3.93 per gallon at the beginning of April—and less discretionary spending due to consumers who are under-employed or unemployed are two outcomes of the U.S. financial turmoil that began in 2008. One result is that consumers are now buying smaller vehicles with more fuel-efficient engines. Continue reading ›
Posted on April 5, 2012, at 6:00 am
 Tim Dunne While light-vehicle sales have been strong in the first quarter of 2012, rising gasoline prices—which averaged $3.92 nationwide at the end of March (according to AAA’s Daily Fuel Gauge Report)—have convinced many consumers to purchase smaller, more fuel-efficient vehicles.
Through the first two months of the year, sales of sub-compact and compact passenger cars have accounted for approximately 25% of all retail sales. Sales of sub-compact vehicles have increased the most, up more than 35% in the first two months of 2012, compared to the same period in 2011.
Yesterday’s sales update with March delivery numbers confirms the trend since sub-compact vehicle sales soared 36.3% and total U.S. new light-vehicle sales reached 1.4 million units, according to LMC Automotive, which is the highest monthly total since 2008, based on analysis from our Power Information Network® (PIN) and LMC Automotive.*
J.D. Power’s John Humphrey, senior vice president of global automotive operations, suggests that higher vehicle sales are obviously welcome news for the U.S. automotive industry and general economy, but he points out that automakers are going to have to closely monitor shifts in segment demand and build accordingly. Continue reading ›
Posted on March 30, 2012, at 6:52 am
Tim Dunne
After a major push to jump start an electric vehicle (EV) industry in China, it appears that the Chinese government is backing off plans for the world’s largest EV industry, and is instead redirecting its focus on promoting hybrid powertrains.
If history is any indication—and automotive history is filled with a . . . Continue Reading China’s Government Backs Off EVs, Looks to Hybrids
Posted on March 27, 2012, at 7:03 am
 Tim Dunne During the past few years, exports of passenger vehicles from China have quietly been making gains, with total exports quadrupling from just 100,000 units in 2009 to more than 400,000 units in 2011. China’s exports are forecast to surpass 1 million units annually by 2019, according to LMC Automotive. China’s export performance in 2011 made it the fourth-largest exporting nation in Asia, behind Japan, Korea and Thailand.
China’s Auto Exports Grow More Slowly due to Local Market, Quality Issues
While China has been the center of production and exports for many of the world’s goods, the export of vehicles has not been as prominent. There are several reasons why auto exports have lagged: First, because the Chinese domestic market has been growing at such an unprecedented pace, automakers with local production have focused on capturing and building their share of the local market; and secondly, the quality of Chinese-made vehicles has needed to become more competitive with global quality standards. Continue reading ›
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Although April is considered a challenging month for sales comparisons because the Easter holiday falls in April some years and in March during other years, signs of sustained growth in the U.S. auto market are evident. In fact, the daily selling rate in April is projected to be 37,000 units, which is higher than the 34,000-unit average rate in the first quarter. (Note: There are 24 selling days in April 2012 vs. 27 in April a year ago.)
