The US market could decline from 2017
- Vehicles’ sales (PC (Passenger Cars) + LUV (Light Utility Vehicles) ) have declined 4.5% in August in the US,
after rising 2.5% in June and 0.5% in July.
after rising 2.5% in June and 0.5% in July.
- Should such a decrease announce the end of the market growth in the US?
The US market has increased every year for 6 years (2010 to 2015), which had not happened for decades.
In the first eight months of 2016, the US car market reached 11.87 million units, up 0.6% compared to 2015.
Consequently the US market could get for the full year 2016 close to (just below or just above) the 2015 record level of 17.47 million units.
The US market has increased every year for 6 years (2010 to 2015), which had not happened for decades.
In the first eight months of 2016, the US car market reached 11.87 million units, up 0.6% compared to 2015.
Consequently the US market could get for the full year 2016 close to (just below or just above) the 2015 record level of 17.47 million units.
- The questions are:
- Will the decline of August followed by also declines in the following months?
- Are we at the top peak of sales and is the August decline the first step of a downturn which could have been experienced several times in the past?
- Positive economic factors such as an easy access to credit, high levels of consumer confidence and attractive selling prices persist indeed. However, replacement demand that followed the 2008-2009 economic recession starts to dry up, mechanically resulting in an overall slowdown in sales.
- Taken into account the demand factors and the economic situation of the US, the scenario privileged by Inovev consists in a slowdown of sales - as soon as the second semester of 2016 - followed by several years of decrease.
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