NAFCU - Vehicle Sales Decline During 2017

ARLINGTON, Va.—Vehicle sales in 2017 totaled 17.23 million units, non-seasonally adjusted, marking the first year-over-year sales decline since 2009.

Total vehicle sales increased in December to 17.85 million seasonally adjusted, annualized units but were down 1.7% from a year ago.

"Looking ahead, sales are expected to trend down further in 2018 as pent-up demand from earlier years diminishes," observed NAFCU Research Assistant Yun Cohen in a Macro Data Flash report. "In addition, banks are tightening standards on auto loans according to a recent survey by the Federal Reserve, which could lead to credit constraints. Despite the slowdown, vehicle sales are expected to remain strong in light of a strong labor market and growing economy."

According to data by Autodata Corp., car sales decreased from 6.3 million to 6.1 million annualized units during the month. However, sales of light trucks increased from 11.2 million to 11.8 million annualized units, Cohen noted.

Five of the six largest automakers reported decreases in their year-over-year sales numbers: Fiat Chrysler Automobiles' sales were down 10.7%, followed by Nissan (-9.5%), Toyota (-8.3%), Honda (-7%) and General Motors (-3.4%). Ford reported gains in sales of 1.3%.

The U.S. brand share of the total vehicle market increased to 45% in December, while the share of domestically assembled vehicles decreased slightly to 78.1%. 

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