Reduced Buyer Demand for Sedans and Coupes Hurts Automakers

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Washington DC May 2, 2018; The AIADA online newsletter reported that auto sales slowed in April amid a continued decline in demand for sedans and compact cars, setting a somber tone as auto makers head into the important summer selling season, reports The Wall Street Journal. Deliveries likely slipped more than 5 percent during the month compared with the same period in 2017, according analyst estimates, partially because there were two fewer selling days this April. Rising oil prices and tougher credit conditions are also creating concern for auto executives hoping to maintain a selling pace near the record levels set in recent years.

Sport-utility vehicles and pickup trucks continue to perform well amid relatively low fuel prices. Slightly higher pump prices aren’t leading consumers to more efficient cars, however, and lower interest in cars such as the Ford Fusion or Nissan Altima is pulling down the broader market. Sales of the Toyota Camry and Honda Accord tumbled 5 percent and 19 percent, respectively, in April.

Sales of SUVs and pickup trucks are estimated to account for 67 percent of new-vehicle retail sales in April, the highest level ever for the month, according to research firm J.D. Power.