New-car sales to fall nearly 4% in North America in the month of June.
New-vehicle sales in North America are expected to fall nearly 4% year-over-year to a total of 1.46 million units in June 2017, resulting in an estimated 16.3 million seasonally adjusted annual rate (SAAR), according to pricing and automotive market research firm Kelley Blue Book.
Tim Fleming, analyst for Kelley Blue Book, said: “Kelley Blue Book projects June will be yet another down month of sales with expected declines in both fleet and retail. With manufacturers continuing to announce production cuts at their plants following weaker consumer demand, it all but solidifies 2017 as a down year. Additionally, we are also seeing lease penetration rates come down from record highs and starting to see a slowdown in the growth of incentives as a result. Both are good signs for the long-term health of the automotive industry and show manufacturers’ commitment to profitability and preserving future used-car values.” June 2017 would represent the fourth month in a row under 17 million SAAR, the longest period since a sixmonth streak from September 2014 through February 2015, the firm said.
After a record sales year in 2016 and seven consecutive year-over-year sales increases, Kelley Blue Book’s forecast for 2017 calls for sales between 16.8 million to 17.3 million units, which is a 1% to 4% decrease over last year.
While the sales growth for compact SUVs has slowed with the rest of the industry and is projected at just 3% in June 2017, the segment’s market share continues to steadily rise. Kelley Blue Book projects just over a one point increase in share for compact SUVs, including top models (Toyota RAV4, Nissan Rogue and Honda CR-V) that continue to sell 30,000 units per month regularly. Mid-size SUVs are also increasing in popularity with North American consumers, and Kelley Blue Book expects the segment to gain a point of market share for June.
Much of the growth for mid-size SUVs segment is expected to come the most popular models (Toyota Highlander, Ford Explorer and Jeep Grand Cherokee), all of which are projected to have double-digit growth.