June Car Sales Sluggish; 11.9-Million SAAR
By AutoObserver Staff June 23, 2011
Production and inventory issues combined with price increases will take their toll on June car sales, which will come in at a Seasonally Adjusted Annual Rate (SAAR) of 11.9 million vehicles, just a tad higher than May’s 11.8 million. An estimated 1,093,000 new car sales (including retail and fleet sales) are expected this month, accounting for an 11.2 percent increase over June 2010 and a three percent increase over May, according to Edmunds.com. That would put the SAAR at 11.9 million vehicles in June. Nevertheless, with the SAAR coming in below 12 million for the second month in a row, Edmunds.com continues to project 12.9 million light vehicle sales overall in 2011.
“As we anticipated, production issues and price increases have led to sluggish sales over the last couple of months and have made it more likely for consumers to delay their new car purchases through the early part of the summer,” said Edmunds.com Chief Economist Lacey Plache. “But as prices and inventory return closer to normal levels by September, many of those lost sales can be made up by the end of this year when consumers return to the market.”
Inventory Shortages Sting Japanese Automakers
Inventory shortages in the wake of the earthquake and tsunamis back in March continue to sting Japanese automakers, particularly Honda and Toyota. Edmunds.com projects that Honda’s sales will fall another 2.8 percent in June, following dramatic decreases reported last month. Toyota, meanwhile, will see a nearly 11 percent uptick in sales this month following a poor showing in May. But the company will still be down 14.5 percent this month compared to June 2010, with a 3.3 percent loss in market share over the same period.
“Honda and Toyota production has increased, but the new vehicles are slow to hit dealer lots,” said Jessica Caldwell, director of pricing and industry analysis at Edmunds.com. “Fortunately for them, Honda and Toyota customers are loyal to their brands, and they’ve likely deferred their new car purchases until inventory is available.” Nissan continues to be the least affected among the Japanese Three. Edmunds.com projects the company’s June sales will increase 5.6 percent over May, and almost 25 percent over June 2010.
Koreans Take Advantage of Japanese Woes with Record Share
Not surprisingly, South Korean automakers Hyundai and Kia are benefitting from the struggles of Japanese automakers. Combined, Korean automakers are looking to sell 111,262 vehicles in June, up 4 percent from May and up a hefty 34 percent from last June, giving Hyundai and Kia combined 10.2 percent of the U.S. market, their highest combined market share in history. Hyundai sales are expected to high 64,650 vehicles in June, a 9 percent hike from May and a 26 percent increase from June a year ago. That would put Hyundai’s market share at 5.9 percent. Kia sales are predicted to come in at 46,612 vehicles, down 3 percent from May but up 46 percent from the year ago June, for a market share of 4.3 percent.
Chrysler Falls Back to Fourth Place Behind Toyota
Edmunds.com estimates that the Detroit Three will account for 49.4 percent of all auto sales in June, down 0.4 percentage points from last month, but up 2.3 points over June 2010. They’re again paced this month by General Motors, whose projected 228,083 sales this month are expected to top May by 3.1 percent. Ford’s sales will show slight growth compared to May (up 1.9 percent), even as its May-to-June market share is expected to fall marginally (-0.2 percentage points).
After overtaking Toyota for third place in sales last month, Chrysler will fall back to fourth place in June, despite a 1.1 percent increase in overall sales. The manufacturer still has the most year-over-year momentum among the top six automakers, with an estimated 26.2 percent boost in sales over June 2010.
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