Auto sales in the United States are on track to surge 9 percent this month, as warmer weather saw the influx of vehicle buyers into dealerships, according to forecasts by LMC Automotive and Edmunds.com. LMC also hiked its North American production forecast for 2014. LMC and Edmunds.com expect the US auto industry to post a seasonally adjusted annualized rate (SAAR) that tops 16 million in April.
LMC still expects full-year 2014 sales of 16.1 million units, representing a 3.3-percent surge over in 2013. TrueCar.com, meanwhile, expects a 7.5-percent surge is light-vehicle sales in the US this month to 1.38 million.
Larry Dominique, president of ALG and executive vice president of TrueCar, said in a statement, that carmakers were determined to have the sales momentum in March be continued in April, thus placing sales on pace for 2014.
Dominique remarked that Asian carmaker "turned up the incentive dial" in April while the Detroit 3 "remained more restrained.” Another strong sales month in April would be enough to set aside worries brought by weak sales in January and February, which were hampered by severe winter weather.
Jessica Caldwell, Edmunds’ senior analyst, said in a statement, said that the figures in April suggest that vehicle buyers are still motivated to acquire new cars, thereby erasing doubts raised by dull sales early in the year.
She said that the sales performance in March and April is more in line with their projection for 2014, noting that there is every reason to believe that “car shoppers will continue to keep this pace.”
Edmunds noted that this month’s forecasts of 1.4 million new cars and trucks would represent the best April volume since 2006. LMC, meanwhile, is expecting the best April retail sales volume since 2005. Carmakers are set to publish their April sales on May 1. [source: automotive news - sub. required]