Light vehicle sales volume set to be down 12% Y/Y in September – report
Contributor since / Followers
Klaus Vedfelt
Light vehicle sales volume in September is expected to reach 1.18 million units, down 12% year-on-year, due to a relatively small number of selling days, according to an S&P Global Mobility report.
The September estimate would translate to a seasonally adjusted rate of 16 million units, a significant rise from the 15.2 million unit reading in August and sustaining a volatile pattern for this monthly metric since May, the report added.
New vehicle sales remain stuck in neutral, said Chris Hopson, principal analyst at S&P Global Mobility.
“The overall tenor of the auto demand environment remains one of consistent, but unmotivated volume levels as consumers in the market continue to be pressured by high interest rates and slow-to-recede vehicle prices, which are translating to high monthly payments,” Hopson added.
The report said it expects continued advances in inventories and incentives, but given news of some automakers cutting output expectations for the rest of the year, affordability issues are expected to remain “stubbornly sticky” even after the first interest rate cut was made.
Strong development of battery-electric vehicle sales remained an assumption in the longer term light vehicle sales forecast.
September BEV share is expected to remain above 8%.
Potentially relevant automotive stocks: Ford (NYSE:F), General Motors (NYSE:GM), Stalantis (NYSE:STLA), Honda (NYSE:HMC), Hyundai (OTCPK:HYMTF), Mazda (OTCPK:MZDAF), Nissan (OTCPK:NSANF), BMW (OTCPK:BMWYY), and Mercedes-Benz (OTCPK:MBGAF).