After TrueCar yesterday (27 May) called May 2014 new light vehicle sales in the US (including fleet) 1,521,000 units, up 5.5% year on year and 9.5% over April, and a SAAR of 16.1m, Kelley Blue Book (KBB) has pegged a year on year rise of 6.7% to 1.54m units, and an estimated 16.05m seasonally adjusted annual rate.
This would be the strongest May since 2007, KBB said.
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A 16.05m SAAR this month would be the second month above 16m this year, following a 15.98m SAAR in April.
“May represents one of the strongest sales months of the year, as consumers take advantage of warm weather and the extended Memorial Day sales weekend,” said senior analyst Alec Gutierrez. “Although transaction prices remain at record highs, shoppers have been able to offset rising prices with low interest financing and affordable lease options for even those with less than perfect credit.”
KBB expects retail sales to account for 83% of May volume.
KBB reckons Nissan is anticipating another prosperous month with a 13.6% gain as its new Rogue and Juke benefit from compact crossovers’ increasing popularity in the US of small crossover vehicles, with the Nissans’ combined sales up 47% this year. Chrysler is seen picking up the most units compared to last year with 12.8% growth.
“Chrysler is having a great year in 2014, gaining a full point of market share versus last year. The Jeep brand in particular has experienced double-digit growth across its full lineup,” KBB said.
Compact utility vehicles are the fastest growing segment in May 2014 and are on pace to break 2m sales for the first time. Mid-size SUV and crossovers also have posted double-digit growth, thanks in large part to the recently introduced Jeep Cherokee, which has sold more than 50,000 units this year to the end of April.
“As a result of the strength in utility vehicles, we expect mid-size cars to lose the most market share of all segments,” added Gutierrez. “In 2014, mid-size car segment sales are down 5.6%, with the biggest declines coming from Chrysler Group, which is down 30.8%. The Avenger has been discontinued this year while the redesigned 200 has just hit dealership lots. The Nissan Altima and Mazda 6 are the only models with year over year gains in the segment.”
There are 27 sales days in May 2014, compared to 26 in May 2013.
