TrueCar, Inc.’s (NASDAQ: TRUE) data and analytics subsidiary, ALG, projects total new vehicle sales will reach 1,099,510 units in January 2020, down 2.9% from a year ago. This month’s seasonally adjusted annualized rate (SAAR) for total light vehicle sales is an estimated 16.5 million units. Excluding fleet sales, ALG expects U.S. retail deliveries of new cars and light trucks to be 887,729 units, a decrease of 0.8% from a year ago.
“January is typically a slower month for vehicle sales, but traditional economic indicators such as income growth, unemployment rates and stock market are healthy and positive,” said Eric Lyman, Chief Industry Analyst at ALG, a subsidiary of TrueCar. “A steady economy and high consumer confidence are contributing to steady sales this month with only a slight year-over-year decline.”
Additional Insights: (Forecast by ALG)
- Among mainstream brands, Kia and Hyundai are expected to kickoff 2020 on a high note with a strong sales month for both brands. Kia is up 10% and Hyundai is up 15% respectively year-over-year for total sales.
- In terms of new car shoppers, Kia and Hyundai were the fastest growing brands on the TrueCar platform in Q4 2019. Kia saw a 70% lift in visitor share and Hyundai saw a 37% lift in visitor share.
- BMW’s momentum continues as they compete for the luxury sales crown going into 2020. This month, the German automaker is expected to be up 11.9% year-over-year in total sales and up 11% on retail sales with incentives up by 2.7%.
- Ford and Nissan are forecasted to be down 11.4% and 24.0%, respectively, in total unit sales compared to a year ago.
- Ford’s decline is primarily driven by fleet which is expected to be down 24%.
- Nissan has dipped in sales largely due to declining sales from both its mainstream Nissan brand as well as its Infiniti luxury brand. A 40.2% year-over-year decline in fleet sales also contributed to the decline in sales.
- Average automaker incentive spend is expected to reach $3,674, down 3.0% or $47 dollars year-over-year, and down 12.7% or $532 from December 2019.
- The most notable year-over-year declines in incentive spend are expected from Mercedes-Benz, Hyundai and Subaru. Meanwhile Toyota, Kia and Volkswagen are expected to have the biggest incentive increases.
- Used vehicle sales for January 2020 are expected to reach 3,329,070, up 6% from a year ago and up 12% from December 2019.
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SOURCE: TrueCar
