May Auto Sales Rise as Smaller Vehicles Take Lead as Economy Bites

May Auto Sales Rise as Smaller Vehicles Take Lead as Economy Bites

May Auto Sales

In May, the U.S. light vehicle (LV) Seasonally Adjusted Annual Rate (SAAR) exceeded expectations, reaching 15.9 million units, up from last month’s 15.8 million and higher than May 2023’s 15.5 million. Notably, growth continued to be concentrated in the most affordable segments, particularly Compact Utility Vehicles (CUVs) and cars. Raw volume for May reached 1.429 million units, marking a 4.8% increase from the previous year. The daily selling rate rose to 54,963 units from 54,553 units last year.

Retail volume for May was estimated to have increased by 1% year-on-year, accounting for 82.1% of sales, while fleet deliveries saw a modest 0.2% increase. May’s LV sales slightly surpassed expectations, partly due to increased demand towards the end of the month, possibly influenced by higher incentives, end-of-month holiday marketing, and fleet deliveries surpassing forecasts.

Among major OEMs:

  • Ford’s sales were slightly below expectations at 183,589 units, up from the same period last year.
  • GM exceeded expectations with sales of 243,758 units, also higher than last year.
  • Honda, Nissan, and Toyota all exceeded expectations in sales volume compared to the same month last year.
  • Stellantis fell below expectations, with sales at 122,230 units, lower than last year.
  • Hyundai/Kia surpassed expectations, with sales totaling 159,558 units, up from the previous year.

Smaller, less expensive vehicles continued to show strength, with significant growth in non-luxury Small CUV and Small Car segments. Despite an overall decrease in car deliveries, Small Car segment sales saw substantial increases year-on-year, contributing to a rise in market share. Overall, the CUV segment experienced a modest increase compared to the previous year, with the majority of sub-segments recording year-on-year growth, although a decline in Middle Luxury CUVs tempered overall gains.

Current Top Auto Stocks

  • Tesla, Inc. (TSLA): Known for its electric vehicles (EVs) and energy products, Tesla has been a leader in the EV market and is often considered a top choice for investors interested in the future of automotive technology.
  • General Motors Company (GM): As one of the largest automakers globally, GM has a diverse portfolio of vehicles, including traditional internal combustion engine vehicles as well as electric and autonomous vehicles.
  • Ford Motor Company (F): Ford has been making strides in electric vehicle development, including the launch of the all-electric Mustang Mach-E, positioning itself for growth in the EV market.
  • Toyota Motor Corporation (TM): Toyota is known for its strong global presence, solid financial performance, and commitment to innovation, including hybrid technology and advancements in autonomous driving.
  • Volkswagen AG (VWAGY): Volkswagen is making significant investments in electric vehicles and has ambitious plans to become a leader in the EV market with its ID series.
  • NIO Inc. (NIO): A Chinese electric vehicle manufacturer, NIO has gained attention for its innovative designs and technology, particularly in battery swapping and autonomous driving features.
  • BYD Company Limited (BYDDF): Another Chinese automaker, BYD, is known for its electric vehicles, energy storage solutions, and electric buses, positioning itself as a leader in sustainable transportation.
  • Daimler AG (DDAIF): Daimler, the parent company of Mercedes-Benz, is investing in electric and autonomous vehicle technologies, aiming to transition its fleet to carbon-neutral by 2039.

 

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