Au­tomak­ers re­port strong US sales in July

The Pak Banker - - BUSINESS -

Au­tomak­ers re­ported strong US sales in July, boosted by sport util­ity ve­hi­cles, as the in­dus­try ben­e­fited again from lower ga­so­line prices and a steadily im­prov­ing US econ­omy.

Over­all sales rose 5.3 per­cent from a year ago to 1.51 mil­lion ve­hi­cles in July, ac­cord­ing to Au­to­data. That puts the an­nual rate of US auto sales at 17.55 mil­lion, ac­cord­ing to Au­to­data, the third month in a row above 17 mil­lion cars, a tor­rid pace of sales for the in­dus­try.

"Right now the in­dus­try is gen­uinely vi­brant, ben­e­fit­ing from ro­bust con­sumer de­mand that is en­abling au­tomak­ers to pull back in­cen­tive spend­ing," said John Kraf­cik, pres­i­dent of TrueCar, an automotive pric­ing and in­for­ma­tion ser­vice.

"Con­sumers are feel­ing more af­flu­ent, and with more dis­pos­able in­come to in­vest back into the econ­omy, the auto sec­tor is thriv­ing." The hot mar­ket is trans­lat­ing into higher prices for cars. The av­er­age price of a car sold was $33,453 in July 2015, up 2.6 per­cent from July 2014, ac­cord­ing to Kel­ley Blue Book.

Gen­eral Mo­tors, the big­gest US au­tomaker, said July sales surged six per­cent from a year ago to 272,512 ve­hi­cles be­hind a strong per­for­mance in pickup trucks, SUVs and some sedan lines. "The sec­ond half of 2015 is off to a great start, with in­dus­try sales above ex­pec­ta­tions," said GM vice pres­i­dent for sales Kurt McNeil. Ford notched 4.9 per­cent rise in sales to 222,731, a gain that in­cluded an 11 per­cent rise in Ford SUVs.

Sales of SUVs have stayed strong with de­clin­ing fuel prices. US ga­so­line prices stand at an av­er­age $2.65 per gallon (3.78 liters), down more than 24 per­cent from a year ago. The sales fig­ures from GM, Ford, Fiat Chrysler, Honda and Toy­ota were all higher than the in­creases pro­jected by online car site Ed­munds, which had given a bullish forecast on July af­ter US au­tomak­ers en­joyed a buoy­ant first half of 2015 thanks in part to lower ga­so­line prices.

Fiat Chrysler's July sales came in at 178,027 ve­hi­cles, up 6.2 per­cent from the year-ago pe­riod and about 2,100 above the level pro­jected by online car site Ed­munds. FCA said sev­eral brands un­der the Jeep line scored strong sales, in­clud­ing its flag­ship Jeep Grand Cherokee, which notched a five per­cent rise. FCA said sales were also strong for Chrysler 200, a mid­sized sedan. Sales in the Ram pickup truck line rose one per­cent.

Toy­ota re­ported sales of 217,181 ve­hi­cles, up 0.6 per­cent from a year ago, as Camry was its best-selling car in July. Lexus lux­ury util­ity ve­hi­cles revved al­most 28 per­cent higher and the Toy­ota High­lander gained more than 12 per­cent. Takoma and Tun­dra pickup sales were up nearly 17 per­cent. "July auto sales showed no signs of slow­down for the in­dus­try," said Bill Fay, Toy­ota Di­vi­sion group vice pres­i­dent and gen­eral man­ager.

Newspapers in English

Newspapers from Pakistan

© PressReader. All rights reserved.