The U.S. car market reported a decrease in numbers as the initial reports mark a drop when compared to the 2015 same time period.
As analysists await the monthly reports for October, initial estimates show that the U.S. car market is expected to register a 6 to 8 percent drop in numbers.
According to initial reports, General Motors (GM) registered the best sale percentages amongst the large automaker zone. The company saw a decrease of just 107 percent as compared to the same month last year.
The list of carmakers to have released their monthly results and which have also marked an increase is relatively small. It includes the likes of Tesla, Hyundai-Kia, Jaguar Land Rover, Subaru, and Mitsubishi.
As nearly all carmakers were expected and have marked a decrease, the race seems to have been won by GM as it registered the smallest drop.
The company exceeded previous expectations and estimates as it set an all-time brand high in their average transaction price. The company also marked and improvement in their retail market shares, which coupled with the rise in average transactions would point towards a strengthening in an industry with an increasingly smaller number of sales.
As the company’s sale numbers of SUV trucks and crossovers helped balanced the fall of its sedan area, they also seemed to consolidate the trend.
The U.S. car maker industry has noted a difference in the numbers of sedan versus SUV sales as most consumers seem to be forgoing the former and choosing the latter.
Based on most market analysis, trucks and SUV’s have been turning increasingly higher numbers and have proven to be more profitable than the sedan models.
Still, even with the percentage drop, analysts do not consider the situation to be that dire as they take into consideration a number of factors.
One of them is the fact that last year’s month of October was considered to be one of the highest sale months ever registered in the auto industry. When compared to it, most were already expecting to see a drop in sales.
The number of sale days would also have to be taken into account as the hurricane that washed over the East Coast is also thought to have affected the sales count.
Taking these and other such factors into consideration, the 17.7 million number of sold vehicles is not necessarily bad or a cause for worry, according to Cox Media’s Karl Bauer.
As Ford is the only company not to have released its October numbers following a fire which affected the company’s Dearborn, Michigan headquarters, analyst Tom Libby considers that 2016 will still be one of the U.S. car market industry’s best years.
The HIS Markit stated that although the month marked a decrease as compared to last year’s same period, the industry as a whole will still have a good year as most companies are most profitable, especially when comparing recent year number with the 2009 – 2011 recession period.
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