EmailTotal domestic motor vehicle sales fell from 10.11 million SAAR in April to 9.09 mln in May. That is the lowest level since November 2010. High gas prices, low inventory levels, and higher vehicle prices all weighed heavily on consumer demand.
Even though anecdotal evidence from dealer reports pointed toward consumers shifting from trucks to more fuel efficient cars, the bulk of the decline in sales came from domestic car sales and not from truck sales. Car sales fell from 4.73 mln SAAR in April to 3.95 mln SAAR in May. Truck sales declined from 5.38 mln SAAR in April to 5.14 mln SAAR in May. The big discrepancy in car vs. truck declines may be due to seasonal adjustment factors.
Like April, low inventory levels and higher relative prices at many Japanese dealers factored into consumers switching from imports to domestic vehicles. Import sales fell from 3.06 mln SAAR in April to 2.71 mln SAAR in May, which is the lowest level in over a year.
Total motor vehicle sales fell to 11.80 mln SAAR. This is the first time since January that sales dropped below 13 mln SAAR and it is the lowest sales level since September 2010.
The year-over-year sales numbers were disappointing, but in-line with most analysts' predictions. Sales fell 4% y/y in May after increasing 18% y/y in April. For the year, sales are up 14% from the same point in 2010.
Japanese automakers lost significant market share in May. Sales for Toyota (TM), Honda (HMC), and Nissan fell 33%, 23%, and 9% respectively.
The Big 3 performed better than the Japanese sellers, but not great compared to last year. Only Chrysler, which sold more vehicles than Toyota for the second consecutive month, remained in the black as sales increased 10% in May. General Motors (GM) and Ford (F) sales fell 1% and 3% respectively.
Hyundai-Kia increased 34% and accounted for 8.8% of total market share, up from 7.4% during the same time period in 2010. Sales at VW Group of America jumped 24%.
