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PR Newswire India Press Releases

J.D. Power and Associates Reports: October New-Vehicle Retail Selling Rate Holding at a Higher Level

WESTLAKE VILLAGE, Calif., Oct. 21, 2011 | Source : PR Newswire
 
 
(Logo: http://photos.prnewswire.com/prnh/20050527/LAF028LOGO-a)

Retail Light-Vehicle Sales

October new-vehicle retail sales are projected to come in at 828,300 units, which represents a seasonally adjusted annualized rate (SAAR) of 10.5 million units. The year-over-year increase in the selling rate is expected to reach 11 percent—the second double-digit growth rate in a row, after four months of single-digit growth. Retail transactions are the most accurate measurement of true underlying consumer demand for new vehicles.

"After a solid September selling rate, there were questions as to whether the strength would continue into October, given continued concerns with the economy," said John Humphrey, senior vice president of global automotive operations at J.D. Power and Associates. "However, consumers are again returning to dealerships, keeping the sales pace more consistent with the strength seen at the beginning of the year."

Total Light-Vehicle Sales

Total light-vehicle sales in October are expected to come in at 1,012,200 units, which is 11 percent higher than in October 2010. Fleet sales are also expected to increase 11 percent compared with October 2010 and will account for 19 percent of total sales.

J.D. Power and Associates U.S. Sales and SAAR Comparisons

October 2011(1)

September 2011

October 2010

New-vehicle retail sales

828,300 units

(11% higher than October 2010)(2)

853,538 units

776,839 units

Total vehicle sales

1,012,200 units

(11% higher than October 2010)

1,050,985 units

947,773 units

Retail SAAR

10.5 million units

10.5 million units

10.5 million units

Total SAAR

13.1 million units

13.1 million units

12.2 million units

(1) Figures cited for October 2011 are forecasted based on the first 13 selling days of the month.

(2) The percentage change is adjusted based on the number of selling days (26 days vs. 27 days one year ago).

Sales Outlook

Given the continued strength in October, J.D. Power is maintaining its forecast for 2011 at 12.6 million units for total light-vehicle sales and 10.2 million units for retail light-vehicle sales.

However, as the level of economic uncertainty remains high, J.D. Power is decreasing its forecast for 2012 to 13.8 million units for total light-vehicle sales (from 14.1 million units) and to 11.2 million units for retail light-vehicle sales (from 11.5 million units).

"The risk of a double-dip recession has increased to nearly 40 percent, driving the reduction in the forecast for 2012," said Jeff Schuster, executive director of global forecasting at J.D. Power and Associates. "While there have been recent positive signs in the economy and we expect another recession will not materialize, the recovery pace for 2012 is taking another hit, although a complete halt in growth is unlikely."

North American Production

North American light-vehicle production through the first three quarters of 2011 is up nearly 9 percent (9.7 million units) from the same period in 2010. The Japanese OEMs are continuing to recover from the earthquake/tsunami disaster earlier this year; however, production is down 10 percent in the year-to-date production comparison. The Detroit 3 OEMs have increased production by 14 percent year-to-date, while the European manufacturers are seeing a 41 percent increase, helped by BMW's expansion in South Carolina.

Vehicle inventory edged up slightly to a 50-day supply at the beginning of October from 49 days at the beginning of September. Car inventory has increased to a 44-day supply, up from 40 days in September. With some cuts in truck production, truck inventory started October at 55 days, down from 57 days in September. Several manufacturers remain well below the industry norm of a 60-day supply. Hyundai/Kia began October with 25 days' supply (was 21 days in September), Honda with 33 days' supply (previously 32 days), and BMW at 29 days' supply (previously 33 days).

The 2011 North American production outlook remains on track for 12.9 million units, an increase of nearly 9 percent from 2010. As inventory replenishment continues, fourth-quarter 2011 production output is expected to reach 3.2 million vehicles, which is a 10 percent improvement from the same quarter in 2010.

About J.D. Power and Associates

Headquartered in Westlake Village, Calif., J.D. Power and Associates is a global marketing information services company providing forecasting, performance improvement, social media and customer satisfaction insights and solutions. The company's quality and satisfaction measurements are based on responses from millions of consumers annually. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies

Founded in 1888, The McGraw-Hill Companies is a leading global financial information and education company that helps professionals and students succeed in the Knowledge Economy. With leading brands including Standard & Poor's, McGraw-Hill Education, Platts energy information services and J.D. Power and Associates, the Corporation has approximately 21,000 employees with more than 280 offices in 40 countries. Sales in 2010 were $6.2 billion. Additional information is available at http://www.mcgraw-hill.com.

J.D. Power and Associates Media Relations Contacts:

John Tews; Troy, Mich.; (248) 312-4119; [email protected]

Syvetril Perryman; Westlake Village, Calif.; (805) 418-8103; [email protected]

No advertising or other promotional use can be made of the information in this release without the express prior written consent of J.D. Power and Associates. www.jdpower.com/corporate

SOURCE J.D. Power and Associates
 

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