The number of US auto sales registered a decrease in the first month of the year even as some of the automakers offered various discounts.
Most automakers have released their January 2017 reports. But the consensus is not quite favorable. As the market was hoping for a third consecutive sales record, the numbers actually dropped.
All the Detroit Big 3 carmakers reported sale drops. The term is used to mark General Motors, Ford, and Fiat Chrysler. All the companies registered a decline in its US auto sales.
Ford Motor Company reported the slightest fall. Its sale numbers declined by 0.7 percent. The General Motors Company was next with a 3.9 percent fall. Fiat US LLC, more commonly known as Fiat Chrysler, reported the biggest drop. It marked an 11.2 percent fall.
Their US auto sales marked a decrease when compared to the same month, last year. And the reported numbers defied most market expectations. ALG had predicted a 1.5 percent fall. Edmunds’ placed it at just 0.7 percent. Blue Book had the lowest estimates, placed at 2.7 percent.
According to reports, the carmakers sold about 1.14 million vehicles in the United States throughout January. The January US auto sales fell by 1.8 percent when compared to 2016. They marked a decrease even as the automakers kept offering discounts. Involved parties were reportedly trying to keep the increasing trend.
Still, market analysts are not expecting a bad year. Some are estimating that the US auto sales number will reach 17 million for the full year. However, there a number of factors which might affect sales.
For example, the same discounts being offered in January. These could be a sign of the rising market competitiveness. And, at least for the moment, they may affect the profitability.
Market analysts calculated the average incentives per car. In January, they reached a total of $3,635. The value is 21.6 percent higher than the January 2016 average.
Most big market players reported declines. But other automakers actually saw their sales numbers increase. Toyota, another large automaker, also registered lower than expected numbers.
The Toyota Motor Corporation saw its US auto sales drop by 11.3 percent when compared to January 2016. In comparison, Nissan reported an increase.
Nissan Motor Company Ltd, another Japanese automaker, registered a 6.2 percent sales increase. Honda’s US auto sales also rose by 5.9 percent. Subaru reported a 6.8 percent increase when compared to the same period in 2016.
Hyundai and Kia were in a stranger situation. They are both part of the Hyundai Motor Group. The Hyundai Motor Company registered a sales number surge of 3.3 percent. But at the same time, Kia Motors marked a drop. The brand’s US auto sales fell by 7 percent.
Volkswagen Group, another big industry name, reported an increase. It was the only large automaker to do so. The increase was reported by Volkswagen. This its namesake, and one of the company brands. Even amidst ongoing scandals, they reported a 17.1 percent US auto sales increase. The same scandals also led to the company offering high discounts.
Most automakers are seemingly hoping for a sales increase in 2017. As such, each adapted and used different strategies for the first month of the year. Whilst some piled on discounts, others offered promotions.
It remains to be seen how the market will evolve. Analysts consider that the US auto sales will also be influenced by other factors as well. These include the low gas prices and the easy credit.
Image Source: Pexels