New car sales figures for May projected to be impressive
Friday, May 25, 2012
A significant year-over-year gain in new car retail sales are expected following a report from a leading authority on the matter.
J.D. Power and Associates and LMC Automotive are speculating that new vehicle retail sales will post their biggest yearly gain since February 2011 in May.
New vehicle retail sales for May are projected to reach 1,087,000 units, which would mean a seasonally adjusted annualized rate of 11.6 million units as volume is expected to rise 20 percent compared to the figure seen in May 2011 following an adjustment for the two additional selling days in May.
"This is the largest year-over-year gain since February 2011, when sales increased 27 percent, compared with February 2010," said John Humphrey, senior vice president of global automotive operations at J.D. Power and Associates. "The fact that we continue to see strong month-over-month results in retail sales points to the underlying strength of the recovery for the industry going forward. In light of the actions that many automakers took to lower their cost base during the recent downturn, this continued increase in volume certainly bodes well for sector profitability in the near term."
In addition to those findings, total light vehicle sales in May are expected to reach 1,384,000 units, which would mark a 21 percent increase compared to May 2011.
"Another healthy retail selling pace in May, combined with a fleet mix of more than 20 percent, is driving the further improvement in the 2012 outlook for U.S. light-vehicle sales," said Jeff Schuster, senior vice president of forecasting at LMC Automotive.
TrueCar.com also posted its sales projections for May and found even more positive news. The May 2012 sales and incentives forecast found that new car sales are expected to reach their highest level in May in five years. New light vehicle sales in the U.S., including fleet, are expected to reach 1,400,665 units, which would mark a 32 percent year-over-year increase.
Auto sales figures and how individual companies fare weigh heavily in the stock market and overall economy. Individuals can take advantage of online stock trading.
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