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January New-Car Sales Down 3 Percent Year-Over-Year Following Record 2016 Finish, According To Kelley Blue BookIRVINE, Calif., Jan. 25, 2017 /PRNewswire/ -- New-vehicle sales are expected to decrease 3 percent year-over-year to a total of 1.13 million units in January 2017, resulting in an estimated 17.4 million seasonally adjusted annual rate (SAAR), according to Kelley Blue Book www.kbb.com, the vehicle valuation and information source trusted and relied upon by both consumers and the automotive industry. "After a record December capped a new record year of vehicles sales in 2016, January figures appear to be enduring a hangover effect, potentially falling more than half a million units from the previous month," said Alec Gutierrez, senior analyst for Kelley Blue Book. "However, January is typically the weakest month of the year for sales, as winter weather sets in and consumers recover from big spending over the holiday season. In addition, many potential sales were likely pulled ahead into December as consumers opted to take advantage of the ample inventory and incentives available industry-wide." Incentive spending is a concern as it continues to rise across the industry, and another record in 2017 would likely require undisciplined sales tactics driven by incentives, leasing and longer loan terms. Kelley Blue Book's 2017 forecast calls for sales in the range of 16.8 to 17.3 million units, which would represent a 1 to 4 percent decrease from 2016. Key Highlights for Estimated January 2017 Sales Forecast:
Looking to Put the Diesel Scandal in the Past, Volkswagen Group Expected to Report Large Year-Over-Year Increases "With multiple new products on the market and looking to put the diesel scandal in the past, Volkswagen Group should report large year-over-year increases, and start to gain back market share," said Gutierrez. "While new cars like the Volkswagen Golf Alltrack and redesigned Audi A4 are contributing to the automaker's growth this month, SUVs like the Tiguan and upcoming Atlas will have to become bigger players to help Volkswagen transition its sales mix toward the growing consumer preference for utilities." American Honda also should do well in January 2017 with expected growth nearing 5 percent. The manufacturer's lineup of SUVs will be primarily responsible for the gains. In fact, sales of American Honda SUVs could increase 20 percent, highlighted by the redesigned CR-V and smaller HR-V.
Consumers Help Push Mid-Size Utilities to Second Highest Volume Segment; Compact Utilities Expected to Decline Quietly growing in the second half of 2016, mid-size SUVs/crossovers look to be the second highest volume segment in January 2017, buoyed largely by strong demand for utilities. Consumers who may have previously considered a large sedan or minivan are instead buying mid-size utilities for roughly the same price. Compact SUV/crossover, the top segment in the industry, is expected to decline slightly in January, but still grow its share of overall sales. In 2017, the Toyota RAV4 and Honda CR-V could unseat the Toyota Camry and Honda Civic to be the highest-selling vehicles in the industry, pickups excluded, which would be appropriately representative of the general trend of consumers shifting from cars to SUVs.
There are 24 sales days in both January 2017 and January 2016. All percentages are based on raw volume, not daily selling rate. To discuss this topic, or any other automotive-related information, with a Kelley Blue Book analyst on-camera via the company's on-site studio, please contact a member of the Public Relations team to book an interview. For more information and news from Kelley Blue Book's KBB.com, visit www.kbb.com/media/, follow us on Twitter at www.twitter.com/kelleybluebook (or @kelleybluebook), like our page on Facebook at www.facebook.com/kbb, and get updates on Google+ at https://plus.google.com/+kbb. About Kelley Blue Book (https://www.kbb.com/) About Cox Automotive
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/january-new-car-sales-down-3-percent-year-over-year-following-record-2016-finish-according-to-kelley-blue-book-300396965.html SOURCE Kelley Blue Book |