Ford, General Motors, and Tesla Report Better-than-Expected Sales
Ford Motor Co. reported an impressive 11% increase in its U.S. second-quarter sales, following in the footsteps of General Motors Co., Tesla Inc., and other automakers who also reported better-than-expected sales earlier in the week.
Analysts Highlight Factors Contributing to Sales Boost
Analysts at Cox Automotive attribute the jump in sales to a significant increase in fleet sales and the resilience of U.S. car buyers, who continue to withstand high prices and record-breaking auto loan rates.
Additionally, Cox recently revised its 2023 new-car sales expectations from 14.1 million to 15 million, projecting retail sales of 12.4 million vehicles compared to the previous estimate of 11.9 million.
U.S. SAAR Surpasses Estimates and Grows in June
Deutsche Bank analysts noted a June seasonally adjusted annual rate (SAAR) of 15.8 million vehicles, surpassing their estimate of 15.5 million and up from 15.1 million in May. This marked a significant improvement from June 2022, when the industry faced certain shortages.
Regarding pricing, midmonth data suggests a slight decrease in average transaction prices from May to June, hovering around $45,800.
The Deutsche Bank analysts expect vehicle production to continue to improve in the coming months, leading to a modest increase in SAAR. However, they anticipate broader pressure on U.S. consumers and increasing inventories, ultimately impacting pricing.
Predictions for the Remainder of the Year
Industry experts predict the year’s SAAR to remain around 15 million vehicles, a solid improvement over the 13.8 million achieved last year and slightly surpassing 2021’s total of 14 million.
Meanwhile, Cox analysts revised their June SAAR estimate to 15.7 million vehicles, slightly higher than the previous projection of 15.2 million.
Despite the positive sales momentum, challenges persist in terms of limited supply and potential dampening effects from higher prices and interest rates. However, the industry is gradually finding a balance between supply and demand, leading to a more stable market with smaller, more predictable sales changes and fewer headlines about significant price fluctuations.