Auto sales in the U.S. are likely to improve significantly in
May based on revival in demand, favorable credits and higher
incentives. According to automotive information website
Edmunds.com, total sales are expected to jump 31.1% to 1,391,163
vehicles in the month from last year. The website believes that the
major automakers are likely to post double-digit growth in
In the past few months, U.S. auto sales continued to be
positively affected by strong pent-up demand with the average
age of vehicles on the roads being 11 years. The automakers are
increasing the incentive spending in order to boost sales further.
In May, average incentive spending was $2,135 per vehicle, up 3.9%
from April and 0.6% from May 2011.
Toyota Motor Corp.
), Chrysler and
Honda Motor Co.
) to achieve market share gains while
Ford Motor Co.
General Motors Company
Nissan Motor Co.
) will occupy the rest of the market during the month.
In April, U.S. saw a sluggish 2.3% growth in light vehicle sales
to 1.18 million units from 1.16 million units in the same month
last year. Meanwhile, it rose 9.5% to seasonally adjusted annual
rate (SAAR) of 14.42 million units from 13.17 million units in
The sluggish growth was attributable to lower sales recorded by
the two big players in the industry - GM and Ford - and fewer
selling days (due to more Sundays than April last year). But thanks
to the fuel-efficient lineups and pent up demand that kept the auto
sales recovery on track.
FORD MOTOR CO (F): Free Stock Analysis Report
GENERAL MOTORS (GM): Free Stock Analysis Report
HONDA MOTOR (HMC): Free Stock Analysis Report
NISSAN ADR (NSANY): Free Stock Analysis Report
TOYOTA MOTOR CP (TM): Free Stock Analysis
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