Incentives Drive Sales Rate to 13.2 Million, Edmunds.com Reports
By Michelle Krebs March 18, 2010A mid-month look at March auto sales indicates a Seasonally Adjusted Annual Rate that is flirting with 13.2 million vehicles, thanks largely to intense incentive competition, according to Edmunds.com.
"The industry has been recharged by incentives offers from Toyota and other automakers who responded in kind," said Edmunds.com Senior Analyst Jessica Caldwell. "There is a lot of money in the marketplace right now, and people are responding."
Edmunds.com Senior Analyst Ray Zhou, Ph.D noted that sales pretty much across the board was strong fom the start of the month. That's when Toyota and others announced incentives, which include the always-popular zero-percent financing for up to 72 months. Momentum accelerated through the second week with the current SAAR pace running at 13.2 million vehicles.
Toyota's incentives, indeed, are working. "Toyota incentives announcement immediately generated nearly a 40-percent spike in the brand's purchase intent by visitors to Edmunds.com," noted Zhou. Purchase intent measures actual buyer interest as reflected in the way they shop on Edmunds.com.
Toyota's daily sales rate is running more than 50 percent higher than last year's rate and nearly 80 percent higher than its rate in February, Zhou said. Toyota's retail market share stood at about 16.2 percent mid-month. That's up from last March's 15.2 percent and last month's 12.8 percent. Toyota's share is no higher only because other manufacturers are having success with their incentives as well.
Ford's retail share is running at about the same level as last month, in the 12.3-12.5 percent range.
Chevrolet remains strong, with retail share at 12.2 percent, up from last month as well as last March. But Chevy is still weaker than the market in total.
Honda has experienced a decent increase -- more than 20 percent -- in its daily sales rate. However, because it isn't aggressive in the incentive game, Honda is seeing a drop in its market share. Its retail share is around 9.2 percent, down from last March's 11.2 percent and down from 10.4 percent from last month.
Zhou noted that sales momentum was strong right from the start of the month, when Toyota and others announced incentives, which include the always-popular zero-percent financing for up to 72 months. Momentum continued through the second week with the current SAAR pace running at 13.2 million vehicles. -- Michelle Krebs, Senior Analyst and Editor at Large
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