J.D. Power and LMC Automotive Report:: New-Vehicle Retail
Sales Are Heating Up with the Start of the Summer Selling Season
U.S. Retail SAAR--June 2012 to June 2013
(in millions of units)
WESTLAKE VILLAGE, Calif.: 21 June 2013; New-vehicle retail sales are continuing their positive trend in June, with
no signs of letting up at the start of the summer selling season, according
to a monthly sales forecast developed jointly by the Power Information
Network(R) (PIN) from J.D. Power and LMC
New-vehicle retail sales in June are projected to come
in at 1,118,800 vehicles, which represent a seasonally adjusted annualized
rate (SAAR) of 13.2 million units, a healthy increase of 500,000 from the
May SAAR. Retail transactions are the most accurate measure of true
underlying consumer demand for new vehicles.
While sales overall are strong, not all segments are
selling at the same pace. Sales of premium vehicles account for just 11.7
percent of new-vehicle retail sales thus far in June, down from 12.9
percent in June 2012.
The underperformance of
premium light-vehicle sales is largely due to the age of the models in
these segments. J.D. Power calculates that the average age--the number of
months the vehicle has been in the market since it was introduced or
redesigned--of premium models sold in the second quarter of 2013 was 43
months. In comparison, the average age of non-premium models--excluding
pickup trucks--is only 34.5 months.
expects that by the second quarter of 2014, the average age of premium
products will fall to just 33 months, as new and redesigned products enter
The strong selling pace continues
to be matched by strong transaction prices. Thus far in June, the average
transaction price of new vehicles is $28,900--the highest ever for the
month of June.
"Although the premium segment
growth has lagged non-premium, there is some good news for the industry in
that the average price of premium vehicles in June is $47,000, up almost 4
percent from June 2012," said John Humphrey, senior vice president of the
global automotive practice. "New premium vehicles entering the market late
this year will also help bolster sales through the second quarter of
Total light-vehicle sales in June 2013 are expected to
grow by 12 percent from June 2012 to 1,380,800 units. Fleet sales in June
are just 19 percent of total sales. Fleet volume for the month is projected
at 262,000 units.
and LMC Automotive U.S. Sales and SAAR Comparisons
(14% higher than June
|1,177,391 units||1,021,635 units|
(12% higher than June
|1,442,061 units||1,283,590 units|
SAAR||13.2 million units||12.7
million units||12.0 million units|
|Total SAAR||15.7 million
units||15.2 million units||14.4
1Figures cited for
June 2013 are forecasted based on the first 13 selling days of the
month.2The percentage change is
adjusted based on the number of selling days in the month (26 days in June
days in June 2012).
LMC Automotive continues to hold the outlook for
total light-vehicle sales in 2013 at 15.4 million units, but has increased
its forecast for retail light-vehicle sales to 12.6 million units from 12.5
million units, as retail sales growth expands.
is little question that the automotive market has strong momentum as we
close out the first half of 2013," said Jeff Schuster, senior vice
president of forecasting at LMC Automotive. "Looking forward, all the key
fundamentals are in alignment to continue the current growth trend, with
production capacity limitations being the only major visible
North American light-vehicle production through
June is up nearly 5 percent, compared with the same period in 2012. Ford's
16 percent increase in production thus far in 2013 is leading all
manufacturers, with a significant portion of its increase driven by sales
boosts for the new Escape and Fusion, as well as its F-Series
Vehicle inventory levels in early June
are holding at 3.2 million units--a 57-day supply, which is down from 64
days last month.
LMC Automotive's forecast for 2013
North American production remains at 16.0 million units, with capacity
utilization now at a lean 90 percent.
About J.D. Power
J.D. Power is a global marketing information services company providing
performance improvement, social media and customer satisfaction insights
and solutions. The company's quality and satisfaction measurements are
based on responses from millions of consumers annually. Headquartered in
Westlake Village, Calif., J.D. Power has offices in North America, Europe
and Asia Pacific. For more information on car reviews and ratings, car
insurance, health insurance, cell phone ratings, and more, please visit JDPower.com
. J.D. Power is a business
unit of McGraw-Hill Financial.
About McGraw Hill Financial
McGraw Hill Financial , a financial intelligence company, is a leader in
credit ratings, benchmarks and analytics for the global capital and
commodity markets. Iconic brands include: Standard & Poor's Ratings
Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, J.D.
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approximately 17,000 employees in 27 countries. Additional information is
available at www.mhfi.com.
About LMC Automotive
LMC Automotive, formerly J.D. Power Automotive Forecasting, is the premier
supplier of automotive forecasts and intelligence to an extensive client
base of automotive manufacturer, component supplier, logistics and
distribution companies, as well as financial and government institutions
around the world. LMC's global forecasting services encompass automotive
sales, production and powertrain expertise, as well as advisory capability.
LMC Automotive has offices in the United States, the UK, Germany, China and
Thailand and is part of the Oxford, UK-based LMC group, the global leader
in economic and business consultancy for the agribusiness sector. For more
information please visit www.lmc-auto.com.