Sep 24, 2020   SOURCE: PR NewsWire

New Vehicle Retail Sales Make a Roaring Comeback in the Third Quarter, Edmunds Forecasts

SANTA MONICA, Calif., Sept. 24, 2020 /PRNewswire/ -- The car shopping experts at Edmunds say that the third quarter represents a positive turning point for the automotive industry despite challenges presented by the coronavirus (COVID-19) pandemic. Edmunds analysts forecast that 3,850,707 new cars and trucks will be sold in the U.S., which reflects an 11% decrease from the third quarter of 2019 but a 30.6% increase compared to the second quarter of the year.

"Third-quarter sales make at least two things apparent: Most of the doomsday scenarios forecasted at the beginning of the pandemic fortunately did not hold true, and the American consumer stepped up to become one of the many heroes in this chapter of resilience for the automotive industry, " said Jessica Caldwell, Edmunds' executive director of insights. "Consistently lower interest rates encouraged new-car buyers -- who were less likely to be financially hindered by the economic fallout of the pandemic -- to pull the trigger on a purchase. Rising used vehicle prices also likely made the new car market more appealing for shoppers on the fence between the two. And car owners also got to leverage the extra value that trade-ins are commanding during COVID-19 to offset the cost of their next purchase."

Although retail sales have shown positive growth, Edmunds experts note that fleet sales continue to struggle during the pandemic. Edmunds estimates that fleet transactions will account for 10.8% of total sales for the third quarter, compared to 17.2% in the third quarter of 2019 and 13.2% last quarter.

"The last piece of the puzzle for the industry's recovery is fleet sales," said Caldwell. "Daily rental companies have understandably reduced or delayed orders as Americans continue to stay at home rather than embark upon business or air travel. It will likely take a bit longer for this side of the business to make as dramatic a comeback as its retail counterparts."

QUARTERLY SALES VOLUME FORECAST, BY MANUFACTURER

                      SALES 
            
     2020 Q3    
         
     Q3 2019     
         
     Q2 2020      
           
     Change from      
           
     Change from
    VOLUME                  Forecast              Sales               Sales                Q3 2019                    Q2 2020



          GM                             634,261             738,638              492,489                      -14.1%                      28.8%



          Toyota                         549,567             627,194              398,029                      -12.4%                      38.1%



          Ford                           534,290             580,251              433,869                       -7.9%                      23.1%



          FCA                            513,872             565,034              367,086                       -9.1%                      40.0%



          Honda                          394,229             429,214              293,502                       -8.2%                      34.3%


           Hyundai/Kia                    337,533             334,834              270,699                        0.8%                      24.7%



          Nissan                         220,645             327,354              177,328                      -32.6%                      24.4%


           VW/Audi                        132,550             150,578              101,605                      -12.0%                      30.5%


           Industry                     3,850,707           4,326,243            2,948,126                      -11.0%                      30.6%

QUARTERLY MARKET SHARE FORECAST, BY MANUFACTURER

                  Market Share          2020 Q3       Q3 2019       Q2 2020         Change from         Change from
                               Forecast         Sales         Sales         Q3 2019             Q2 2020



     GM                                  16.5%         17.1%         16.7%               -3.5%               -1.4%


      Toyota                              14.3%         14.5%         13.5%               -1.6%                5.7%



     Ford                                13.9%         13.4%         14.7%                3.5%               -5.7%



     FCA                                 13.3%         13.1%         12.5%                2.2%                7.2%


      Honda                               10.2%          9.9%         10.0%                3.2%                2.8%


      Hyundai/Kia                          8.8%          7.7%          9.2%               13.3%               -4.5%


      Nissan                               5.7%          7.6%          6.0%              -24.3%               -4.7%


      VW/Audi                              3.4%          3.5%          3.4%               -1.1%               -0.1%

More insight into recent auto industry trends can be found in the Edmunds Industry Center at http://www.edmunds.com/industry-center/.

About Edmunds
Edmunds guides car shoppers online from research to purchase. With in-depth reviews of every new vehicle, shopping tips from an in-house team of experts, plus a wealth of consumer and automotive market insights, Edmunds helps millions of shoppers each month select, price and buy a car with confidence. Regarded as one of America's best workplaces by Fortune and Great Place to Work, Edmunds is based in Santa Monica, California, and has a satellite office in Detroit, Michigan. Follow us on Twitter, Facebook and Instagram.

CONTACT:
Talia James-Armand
Associate Director, PR & Communications
PR@Edmunds.com
310-309-4900
http://edmunds.com/about/press

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SOURCE Edmunds