Auto Monthly Chartbook: December LV SAAR Rises, 2023 Hits Four-year High
The U.S. automotive industry witnessed a robust performance in December, closing out the year on a high note. The Seasonally Adjusted Annual Rate (SAAR) for light vehicle (LV) sales in December surged to 15.8 million units, surpassing expectations of 15.7 million units. This marked a substantial increase from November’s SAAR of 15.3 million units. The December SAAR was notably higher than the same period in the previous year, reaching the highest level since July, when it stood at 15.9 million units.
The positive momentum in December was attributed to several factors. Increased discounting, higher vehicle availability, and a rise in fleet deliveries played significant roles in boosting the SAAR. Wards, a leading automotive data provider, highlighted that the month exceeded expectations, reflecting the industry’s resilience and adaptability.
In terms of raw volume, December recorded 1.433 million units, reflecting a robust year-over-year increase of 13.0%. Fleet deliveries, estimated to have risen by 31% year-over-year, accounted for 15.0% of total LV sales. This marked an increase from 13.5% in the same period a year ago and 14.0% in the previous month. Retail volume, a key indicator of consumer demand, increased by an estimated 16% year-over-year.
The SAAR for the fourth quarter concluded at 15.5 million units. While slightly below the third quarter’s SAAR of 15.6 million units, it represented a notable improvement from the fourth quarter of the previous year, which stood at 14.1 million units.
December U.S. LV Sales Highlights for Major OEMs:
- Ford: Sales reached 185,464 units, exceeding expectations by 0.3% and showing growth from the same month in the previous year.
- GM: Recorded sales of 234,494 units, slightly below expectations by 2.3%, but still higher than the same period last year.
- Honda: Achieved sales of 123,388 units, surpassing expectations by 2.0% and exhibiting substantial growth from the previous year.
- Nissan: Sales amounted to 73,712 units, surpassing expectations by 5.3% and showing an increase from the same month in the previous year.
- Stellantis: Reported sales of 134,040 units, exceeding expectations by 4.7% and demonstrating growth from the same month last year.
- Toyota: Sales reached 226,116 units, slightly above expectations by 0.1%, and showcased growth from the same period in the previous year.
- Hyundai/Kia: Achieved sales of 142,242 units, surpassing expectations by 0.9% and exhibiting growth from the same month last year.
2023 Annual Overview:
Total sales for 2023 amounted to 15.46 million units, marking a substantial increase of 12.4% from the 11-year low of 13.75 million units recorded in 2022. The 2023 total is the highest since 2019 when it reached 16.96 million units. Notably, truck penetration reached a new high of 80%, while car penetration reached a new low of 20%, underscoring the continued dominance of light trucks in consumer preferences.
Light-truck sales rose to 12.4 million units, reflecting a robust 13.5% year-over-year increase, while car volumes reached 3.1 million units, up by 8.3% year-over-year. The rise of Compact Utility Vehicles (CUVs) played a pivotal role in driving truck deliveries, accounting for a record 47.9% penetration.
For 2023, retail volume reached an estimated 12.95 million units, indicating a 9.5% year-over-year increase, while fleet deliveries totaled 2.50 million units, reflecting a substantial 32% year-over-year growth.
In summary, the automotive industry in December showcased resilience and strong consumer demand, contributing to a robust year-end performance. The positive SAAR, exceeding expectations, and notable growth in both retail and fleet deliveries indicate a healthy and dynamic market poised for continued success in the coming year.
