Auto Sales Decline in June

By Siwaporn Bumroongpan

9 July 2010 – Auto sales in both the U.S. and China continued to rise in June but at a slower pace than the previous month, prompting analysts to say that this could be a sign of a cooling market for the second half of the year.

The recent slowdown in sales resulted from tax cuts in the small-car-purchase and other stimulus policies implemented amid the global financial crisis which seemed to have pulled purchases forward.

China's auto sales surged 30.45% year on year to 7.18 million units in the first half of the year, keeping China’s position as the world's largest auto market intact.

Auto sales of the major manufacturers rose in June from last year, with Toyota Motor Corp. reporting a 7.7% rise to 60,900 units, Nissan Motor Co. a 30% rise to 58,151 units, and General Motor Co. a 23% rise to 176,486 units.

Auto companies also reported increases in total auto sales in the first-half period which were also up from previous year. Toyota’s first half year total auto sales was up 27% to 362,300 units, Nissan was up 47% to 330,573 units, General Motor was up 49% to 1,209,138 units, Ford Motor Co. was up 53% to 301,524 units and Changan Ford Mazda Automobile Co., a three-way joint venture between Foad, Changan Automobile (Group) Co. of China and Mazda Motor Corp. of Japan, was up 46% to 205,563 units.

U.S. auto sales also grew in June from the depressed level of year earlier. Light vehicle sales rose 14% to 983,738 units in June up from last year, with major automakers posting some of their smallest gains of the year amid signs of sagging consumer confidence and a cloudier economic outlook.

The annual sales rate slipped to 11.08 million vehicles in June, down from 11.6 million in May and below the 11.15 million averages of the first half, according to industry tracking firm Autodata. The lower US sales come as weaker sales in France and the prospect of higher taxes in markets like Spain deepened concern about a double-dip recession worldwide.

For U.S. auto sales, General Motors Co. sold 194,716 units in June, up 11% from year ago. Ford Motor Co. sold 175,960 units, up 13%, Chrysler Group LLC sold 92,482 units, up 35%, Honda Motor Co. sold 106,627 units, up 6%, Toyota Motor Corp. sold 140,604 units, up about 7%, Volkswagen AG sold 21, 051 units, up 11% and Daimler AG sold 19,574 units, up 20% in Mercedes-Benz and Smart sales.

Generally, auto sales in U.S. in June compared to May, for all the companies saw declines of 5% to 23%.

Sales in June were hurt by recent dips in consumer confidence as well as lower sales to commercial fleet buyers such as rental-car companies, which are paring back purchases after restocking their fleets earlier in the year.

(Irco.biz)