Sales of new crossovers, SUVs and pickup trucks continued to gain market share through the first five months of 2017, NADA reports in the May edition of Market Beat.
“While May traditionally is a good month for selling cars, light-vehicle sales came in below expectations,” said NADA Chief Economist Steven Szakaly. “The bright spot is the light-truck segment, which continues to grow market share and has comprised 62.7% of sales so far this year.”
Incentives offered during the Memorial Day weekend did not boost demand, which resulted in a seasonally adjusted annual rate (SAAR) of 16.58 million units in May. Year-to-date, the SAAR is just shy of 17 million units, he added.
“The industry remains saddled with higher-than-normal inventory, particularly in the small- and mid-size car segments,” Szakaly added. “We expect incentives to continue rising the rest of the year, as manufacturers battle for market share against a backdrop of declining overall volume.”
Overall, NADA’s sales forecast remains unchanged at 17.1 million new cars and light trucks in 2017.