U.S. automobile sales in March will increase nearly 1.9 percent from a year previously, even as customer discounts continue to stay at record levels, market specialists J.D. Power and LMC Automotive informed on Friday.
March U.S. new vehicles sales will have to be 1.62 million units, boost of 1.9 percent from 1.59 million systems a year previously, the consultancies stated.
The projection was based on the very first 16 selling days of the month.
The seasonally adjusted annualized rate for the month would be 17.3 million automobiles, boost from 16.8 million a year previously.
Retail sales to consumers, which do not consist multiple fleet sales to rental agencies, companies and government, were set to boost 1 percent in March.
Highlighting policy unpredictability over whether Republican politician U.S. President Donald Trump will push ahead with strategies for a border tax on imported cars, LMC and J.D. Power said they were maintaining their 2017 sales projection of 17.6 million vehicles, a boost of 0.2 percent from last year.
U.S. sales of brand-new cars and trucks struck a record high of 17.55 million units last year.
However as the marketplace has started to saturate, automakers have been hiking incentives to attract consumers to buy.
The consultancies stated industry incentive spending was $3,768 every new vehicle sold, the highest ever for March. The previous record for the month was set in 2009.
In a statement, Deirdre Borrego, senior vice president of automobile data and analytics at J.D. Power, stated the competitiveness of the market continues to be evident in ever-rising incentive levels.
Incentives as a percentage of a maker’s suggested list price were at 10.4 percent in March, surpassing 10 percent for the first time in the month since 2009, J.D. Power and LMC Automotive stated.