TrueCar, Inc.’s (NASDAQ: TRUE) data and analytics subsidiary, ALG, projects total new vehicle sales will reach 1,399,639 units in November 2019, down 3% from a year ago when adjusted for the same number of selling days. This month’s seasonally adjusted annualized rate (SAAR) for total light vehicle sales is an estimated 16.9 million units. Excluding fleet sales, ALG expects U.S. retail deliveries of new cars and light trucks to be 1,193,462 units, a decrease of 2.6% from a year ago when adjusted for the same number of selling days.
“Economic fundamentals remain solid with November auto sales continuing to follow a similar trend as previous months in 2019 with a slight year-over-year decline,” said Oliver Strauss, Chief Economist at ALG, a subsidiary of TrueCar. “Consumers are continuing to purchase vehicles yet at a more cautious rate than in previous years due to ongoing tariff and recession uncertainty.”
Additional Insights: (Forecast by ALG)
- Among mainstream brands, Honda stood out for total sales, up 5.6% year-over-year, buoyed by an increase in incentive spend and fleet sales. Typically known for its discipline, Honda has increased incentive spend throughout 2019 but maintains a lower dollar spend than most other manufacturers.
- Hyundai and Kia continue to perform well, up 7.8% and 6.1%, respectively, year-over-year, led by their new Palisade and Telluride utilities and other new product.
- On the TrueCar Platform, the Hyundai Palisade and Kia Telluride midsize utilities are continuing to resonate with consumers, generating high demand and often driving transaction prices above MSRP.
- For the luxury brands, BMW had a strong month with a 4.4% year-over-year sales increase and Mercedes-Benz stood out again, up 3.1% on total sales and 5.3% on retail while lowering incentives.
- Tesla is expected to be up month-over-month but down year-over-year given difficult compares from last year’s surge in buyers hoping to secure the last of their federal EV credits. The electric automaker is expected to be down 11.3% in total units year-over-year.
- Nissan is forecast to be down 12.4% in total unit sales compared to a year ago with losses expected from both its Infiniti luxury brand as well as its mainstream Nissan brand. Meanwhile, FCA is expected to be down 9.2%, mainly attributed to aging product and a decrease in fleet sales.
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