US auto sales slide in September as China enjoys boom 14th October 2009
US auto sales declined by 23 per cent on a year-on-year basis during September as the hangover from the ‘Cash for Clunkers’ programme began to take hold.
According to new figures, General Motors (GM) and Chrysler bore the brunt of emptying showrooms, posting drops of 45 per cent and 42 per cent respectively.
Ford, the remaining member of the ‘Big Three’ US automakers, fared considerably better, managing to limit its decrease to just five per cent, despite its low inventories.
The statistics – which were released by Autodata Corporation – also revealed that industry-wide sales slumped by 41 per cent from the total recorded in August.
Furthermore, the annualised rate tracked by analysts indicated that transaction volumes fell to 9.2 million vehicles, which would represent the lowest figure since April.
“Consumer traffic at dealerships evaporated in the absence of the incentive programme, which ended in August,” said Standard & Poor’s Equity Analyst Efraim Levy.
“However, we expect the September lull to be temporary, as the comparisons get easier and we see the economy improving.”
Japanese manufacturers also struggled following the conclusion of the rebate scheme, with Toyota – which is the world’s largest automaker – suffering a 13 per cent decline.
Honda and Nissan recorded slumps of 20 per cent and seven per cent respectively, although the latter managed to increase its market share from 6.2 per cent to 7.4 per cent.
However, there was better news for Hyundai, South Korea’s largest automaker, which saw an increase of 27 per cent, while its affiliate, Kia, posted a sales jump of 24 per cent.
In addition, Volkswagen saw its US deliveries increase by 1.5 per cent from 12 months earlier and BMW, the world’s biggest luxury automaker, enjoyed a 3.6 per cent sales rise.
BMW also revealed that its overall sales grew by 0.7 per cent in September – the first positive move this year – prompting the company to improve its full-year sales forecast.
“Provided there are no economic setbacks, we should continue to make gains throughout the remaining months of the year,” Group Sales Chief Ian Robertson said.
“There is a good chance that we will end this year with a moderate decrease in sales of only ten to 15 per cent from 2008 levels, despite difficult economic conditions overall.”
Meanwhile, in China, which has surpassed the US as the world’s largest auto market, government incentives boosted September sales by 78 per cent to 1.33 million vehicles.
Tax on purchases of small cars has been halved, while a $730 million subsidy scheme aimed at rural buyers of light trucks and minivans has also contributed.
China now heads up world sales after shifting 9.66 million vehicles in the first nine months of the year, according to the China Association of Automobile Manufacturers.
GM has benefited spectacularly from the incentives, selling 1.29 million vehicles in the country between January and September, which is a year-on-year rise of 55.6 per cent.
“Sales continue to surpass forecasts as nearly all market segments experience growth,” said Kevin Wale, Resident and Managing Director for GM’s China operations.
Moving to Japan, sales of cars, trucks and buses (excluding minicars) increased by 3.5 per cent during September when compared to the equivalent period 12 months earlier.
According to figures from the Japan Automobile Dealers’ Association, 321,737 units were sold, representing the second month of gains following a year-long slump.
Buoyed by tax cuts and subsidies which run until March, Toyota reported an increase of 9.4 per cent to 139,775 vehicles, although the total did not include its Lexus models.
In addition, Honda and Nissan – which are the country’s second and third-biggest automakers – enjoyed sales leaps of 15 per cent and 3.7 per cent respectively.
Meanwhile, the Society of Motor Manufacturers and Traders (SMMT) revealed that new car registrations in the UK increased by 11.4 per cent during September to 367,929 units.
The improvement is largely being attributed to the government’s scrappage scheme, which Lord Mandelson announced recently would be extended by 100,000 vehicles.
“Market conditions remain challenging with demand being underpinned by the extremely successful scrappage incentive scheme,” said Paul Everitt, Chief Executive of the SMMT.
“The extension of the scheme will help to sustain demand through the latter part of this year and into 2010. This will allow economic recovery to strengthen and safeguard valuable industrial capability.”
Elsewhere in Europe, the VDA vehicle manufacturers’ association confirmed that Germany’ new car market grew by 21 per cent (316,000 units) during the month.
Although the country’s own scrappage scheme has now come to an end, orders fell by just 12 per cent, which was less than the figures predicted by market observers.
“It is still too early to declare the crisis over, but there are signs of a tangible stabilisation on foreign markets after a year (of a slump),” VDA President Matthias Wissmann told Reuters.
In France, sales increased by 14 per cent in September, representing the fifth straight monthly gain, as consumers responded to government incentives for buying small cars.
Domestic companies Peugeot Citreon – which is the second-largest automaker in Europe – and Renault reported rises of 9.5 per cent and 18 per cent respectively.
Ford enjoyed a particularly strong month across the continent, increasing its market share to 10.1 per cent and its sales by 12.3 per cent in comparison with last September.
The automaker’s performance was its fourth monthly sales rise in a row and also means that it has now improved its year-on-year market share for nine straight months.
Ingvar Sviggum, Ford of Europe’s Vice President for Marketing, Sales and Service, noted that September is traditionally a strong month for the firm but that it had “surpassed expectations” on this occasion.
Moving to India, figures from the Society of Indian Automobile Manufacturers suggest that auto sales in the country jumped by 21 per cent year-on-year during the month.
The leap, which is the eighth consecutive month of growth, can be explained by government-led lower borrowing costs and the imminent arrival of a number of festivals.
Vaishali Jajoo, an analyst at Angel Broking, told the Wall Street Journal: “The overall recovery in the Indian auto sector continues due to a sustained improvement in demand.
“This is due to improving macro-economic factors such as expanding liquidity, lower interest rates and rising consumer confidence.”
Meanwhile, national dealers’ association Fenabrave confirmed that new vehicle sales in Brazil increased by 19.85 per cent to a total of 296,651 units during September.
According to the body, the improvement can be attributed to consumers rushing to take advantage of government tax breaks for car purchases before their imminent expiry.
However, the country’s automakers’ association, Anfavea, noted that auto output in Brazil slumped by 6.7 per cent from August and by 8.4 per cent from 12 months earlier.
Finally, auto sales in South Africa declined by 22.4 per cent year-on-year in September as increasing unemployment and its first recession for 17 years dampened demand.
The Pretoria-based National Association of Automobile Manufacturers of South Africa confirmed that the month was a slight improvement on August’s 26.2 per cent drop.
However, vehicle sales in the country have now fallen every month since April 2007.
Sources:
U.S. Sept auto sales plunge; GM, Chrysler hit hard (01/10/09)
Hyundai U.S. Sales Rise for 3rd Month; Toyota’s Fall (02/10/09)
Volkswagen, BMW Raise U.S. Sales as Models Introduced (02/10/09)
BMW says 2009 vehicle sales may only fall 10-15 pct (07/10/09)
China auto sales jump 78 percent in September (13/10/09)
GM Jan-Sept China vehicle sales up 55.6 pct yr/yr (08/10/09)
Toyota, Honda Lead Increase in Japan’s Vehicle Sales (01/10/09)
Market momentum sustained in September (06/10/09)
German new car market swells 21 percent in Sept (02/10/09)
French Car Sales Rise 14% in Fifth Consecutive Gain (01/10/09)
India September Car Sales Rise on Festival Demand (13/10/09)
Ford of Europe Reports Strong September Sales to Break 10 Percent Market (12/10/09)
Brazil auto sales up 19.9 pct in September-dealers (01/10/09)
Brazil auto output slumps in Sept; sales soar (07/10/09)
South African Vehicle Sales Dropped Annual 22.4% in September (02/10/09)
Sourced via platinum.matthey.com
