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Transportation equipment industry

Auto Industry Sees Strong Sales in January, Aiding US Economic Recovery

Strategic Insights

— 1 min read

The auto industry enjoyed a remarkable January, with General Motors (GM) reporting a 4 percent increase in overall monthly sales compared to the same month last year. The sales surge was driven by higher demand for new cars and trucks, with car sales rising 11.4 percent and light-truck sales increasing 3.5 percent. This comes on the heels of a strong 1998 sales year, in which US consumers purchased 15.5 million new cars and trucks, making it the industry's second-best sales year after 1986. Automakers predict sales of 15 million units in 1999, similar to the past six years. Meanwhile, other major automakers such as Toyota, Honda, and Ford also reported double-digit sales increases for January.

Key Takeaways:

  • General Motors reported a 4 percent increase in overall monthly sales in January 1999 compared to the same month in 1998.
  • Car sales rose 11.4 percent and light-truck sales increased 3.5 percent at GM in January.
  • Mazda Motor Corp. was the only major automaker to report a decline in US sales, with a 7.5 percent drop to 13,447 units.
  • Mitsubishi Motors Corp. saw a 14 percent U.S. sales increase in January, with car sales rising 13 percent and sport-utility vehicle sales climbing 19 percent.
  • Other major automakers such as Toyota, Honda, and Ford also reported double-digit sales increases for January.
  • Honda set a record for January with a 17 percent sales increase, driven by higher demand for small sport-utility vehicles, minivans, and luxury cars.
  • Toyota sales skyrocketed 27 percent in January.

Statistics:

  • 15.5 million new cars and trucks were sold in the US in 1998, a 2nd-best sales year after 1986.
  • Automakers predict sales of 15 million units in 1999, similar to the past six years.
  • GM sold 311,043 vehicles in January, with car sales rising 11.4 percent and light-truck sales increasing 3.5 percent.
  • Mazda Motor Corp. reported a 7.5 percent decline in US sales in January, with 13,447 units sold.
  • Mitsubishi Motors Corp. saw a 14 percent US sales increase in January, with 17,217 units sold.

Sources:

  • UPI (February 3, 1999)
  • COMTEX News (February 3, 1999)

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