Steel Markets
April 22, 2014
US Vehicle Sales and NAFTA Vehicle Production in March 2014
Written by Peter Wright
Light vehicle sales in the US rebounded strongly in March as the weather improved in the North and automakers increased incentives to reduce excess inventory. Light vehicles are cars and light trucks (GVW Classes 1-3, under 14,001 lbs.). The sales rate increased to 16.4 million units from 15.4 million units in February. The increase in light truck sales was particularly strong. Car and light truck sales achieved annual rates of 7.8 million units and 8.6 million units respectively. As a result, the light truck share of sales increased to nearly 53 percent, its highest share since mid-2011.
Moody’s Analytics expects vehicles sales to increase to a SAAR pace of nearly 17 million vehicle by year end and remain in that range in 2015 before coming down to a more sustainable pace in 2016. A pace of 17 million units incorporates the release of pent-up demand, which should diminish by 2016. Strong sales of vehicles assembled in North America reduced the off shore import market share to 22 percent, the lowest level since 2006.
