US vehicle sales remain mixed, reduce market estimates for Q2 growth

Vehicle sales in the United States remained mixed for the month of June, trimming down market expectations for the country’s second quarter growth figures. Also, mixed data failed to remove worries over the country’s growing economic uncertainty that is probable to deter consumers from spending.

Industry-wide sales rose 2.5 percent to 1.51 million vehicles, researcher Autodata Corp. reported. The industry’s annual sales pace, adjusted for seasonal trends, was 16.7 million, below analysts’ projection of 17.2 million, data released showed Friday.

While sales of General Motors Co., Toyota Motor Corp., Fiat Chrysler Automobiles NV and Honda Motor Co. trailed market expectations in June, Nissan Motor Co. and Ford Motor Co. beat projections during the same period. Toyota sales fell 5.6 percent, while analysts had expected a 3.6 percent gain. GM deliveries fell 1.6 percent as the largest US automaker continues to reduce less-profitable business with rental fleets. The Detroit-based company said retail sales to individuals rose more than 1 percent.

Toyota’s results were dragged down by a 13 percent decline in sales of its Camry family sedan and a 27 percent plunge in deliveries of its Prius hybrid. However, sales of its RAV4 small sports utility vehicle rose 10 percent. On the other hand, sales of Nissan jumped 13 percent to hit record high in June, while Ford’s 6.4 percent light-vehicle increase and FCA’s 6.5 percent growth were led by pickups and higher sales in sport utility vehicles.

"In spite of some severe stock-market volatility in June, the American consumer stayed focused on buying new vehicles and propelled FCA to six vehicle sales records last month," Bloomberg reported, citing, sales chief Reid Bigland.

Further, sales of GM’s two brand SUVs, the Chevy Suburban and the Cadillac Escalade, posted gains of 33 percent and 17 percent respectively in June. However, the auto company’s total fall in sales included a 3.7 percent drop for the Chevy Silverado large pickup.

"Softness in auto sales drove the bulk of the decline. The disappointing number reduces our estimate of Q2 GDP growth to 2.6 percent," Barclays said in its latest research report.