US Auto Sales Surge to Two-Year High in November

Strategic Insights -

Consumer demand for new vehicles drove US auto sales to a two-year high in November, despite a lack of big-year-end sales promotions. Chrysler and Volkswagen led the sales gains, with percentage increases of 45% and 41%, respectively. Other automakers also saw double-digit gains, while General Motors and Toyota trailed behind. The average vehicle price rose 4% to exceed $30,000, thanks to strong prices for used cars and low-interest-rate loans. Analysts expect US auto sales to continue growing, driven by pent-up demand and a shift in consumer attitudes towards making big-ticket purchases despite economic uncertainty.

Key Takeaways:

  • Chrysler Group led the sales gains in November with a 45% increase, followed closely by Volkswagen at 41%.
  • Hyundai Motor Co, Nissan Motor Co, and Ford Motor Co also saw double-digit gains, with increases of 22%, 19%, and 13%, respectively.
  • General Motors and Toyota trailed behind with increases of 7%, while Honda Motor sales were down 6.4%.
  • Automakers were able to charge higher prices for new cars due to strong used car prices and low-interest-rate loans, which kept new vehicles affordable for many consumers.
  • Initial sales results indicated an annualized sales rate of nearly 13.4 million vehicles, exceeding analyst expectations.
  • November marked the third consecutive month that annualized vehicle sales topped 13 million.
  • Analysts have long predicted that replacement sales would drive growth in the US auto market, citing the average age of US vehicles as a key factor.

Statistics:

  • 45%: Chrysler Group's sales gain in November (Source: Reuters)
  • 41%: Volkswagen's sales gain in November (Source: Reuters)
  • 22%: Hyundai Motor Co's sales gain in November (Source: Reuters)
  • 19%: Nissan Motor Co's sales gain in November (Source: Reuters)
  • 13%: Ford Motor Co's sales gain in November (Source: Reuters)
  • 7%: General Motors' sales gain in November (Source: Reuters)
  • 6.4%: Decrease in Honda Motor sales in November (Source: Reuters)
  • $30,000: Average vehicle price in November, up 4% from the previous month (Source: TrueCar.com)
  • 11 years: Average age of US vehicles, two years older than in 2007 (Source: Reuters)
  • 3.5%: Share of overall US consumer spending on vehicles in 2011, down from a long-term average of near 6% (Source: Reuters)
  • 1982: Year of the recession that saw the lowest percentage of US consumer spending on vehicles (Source: Reuters)
  • 13.4 million: Annualized sales rate in November, exceeding analyst expectations (Source: Reuters)
  • 2009: Year of the "cash for clunkers" trade-in incentive program, which saw a strong sales rate (Source: Reuters)

Sources:

  • Reuters
  • TrueCar.com
  • Nationwide Insurance
  • Ford Motor Co
  • General Motors
  • Hyundai Motor Co
  • Nissan Motor Co
  • Chrysler Group
  • Volkswagen