KBB sees 2015 as slowest growth in US auto industry in six years

Article by Christian Andrei, on January 14, 2015

Analysts at Kelley Blue Book expect a sixth consecutive year of recovery in the United States auto industry this 2015, although the growth would be the lowest since 2010. They said at the eve of the Detroit auto show that for this year, US light-vehicle sales will surge 2 percent to 16.9 million units, up from 16.5 million in 2014.

So far since 2009, US light vehicle sales jumped 6.1 million units. Cars.com and Toyota Motor Sales U.S.A. have similar forecasts at 17.0 million and 16.7 million (conservative), respectively. KBB analyst Alec Gutierrez remarked that retail sales will surge from 13.5 million in 2014 to 13.9 million this year, which means that 2015 fleet sales would remain more or less at 3 million units.

But KBB expects carmakers to play tough this year to get those sales – higher incentives and net prices, and more leasing. KBB projects the number of new vehicles leased to hike to 3.51 million this year from 3.36 million in 2014.

On the other hand, Gutierrez expects average incentives to jump $159 to $2,950 per vehicle -- the highest dollar amount on record. However, customers may not feel the effect since prices of vehicles are also on the rise.

He remarked that such incentives are still not at a level that could be considered risky since the average transaction price is also rising. KBB expects 2015 incentives to be 8.8 percent of average transaction prices, which should be at $33,500.

Topics: united states, sales

If you liked the article, share on:


Login or Create new account to add a comment!


Mitsubishi is now officially part of the Renault-Nissan alliance after Nissan took over the Japanese car company recently. We know a lot has been happening in the car industry, but...
by - October 24, 2016
Driving the newest 2017 BMW 5-Series (G30), Clive Owen (Closer, Children of Men) returns to his role as “The Driver”. In this latest installment, what initially starts as a simple...
by - October 24, 2016
Many had wished that a Lamborghini Huracán Superleggera would somehow make a surprise debut at the recently held Paris Motor Show. Sadly, not a single Lamborghini appeared anywhere in sight....
by - October 24, 2016
Aston Martin and Red Bull Racing teamed up for the first time in creating what looks like one of the most ferocious beasts in history. The British car manufacturer has...
by - October 24, 2016
German premium carmaker Audi is reportedly planning to buy back around 25,000 Audi Q7 SUVs powered by its 3.0-liter V6 TDI engine in the United States. The buyback should compensate...
by - October 24, 2016