US auto sales highest for two years as other nations also prosper 7th September 2009
Auto sales in the US during August reached their highest levels since October 2007, according to figures compiled by Bloomberg.
The news provider revealed that the industry-wide sales total was 1.26 million vehicles, representing a one per cent improvement from the equivalent period 12 months earlier.
Increased sales volumes are being attributed to the government's 'Cash for Clunkers' scheme, which saw 690,114 new transactions between 27th July and 24th August.
"The Car Allowance Rebate programme has far exceeded most expectations," CSM Worldwide analyst Joe Barker told Bloomberg.
"A sizeable portion of the demand spikes in July and August were pulled forward from September and the fourth quarter."
Ford was the major beneficiary of the incentives, with sales increasing by 17 per cent and its Focus compact and Escape crossover offerings proving particularly popular.
"Overall, we thought it was a very, very successful programme in jump-starting sales," Mark Fields, Ford's Americas President, said in an interview with the Associated Press.
However, the news was less positive for the other 'Big Three' automakers - General Motors (GM) and Chrysler - which saw declines of 20 per cent and 15 per cent respectively.
Toyota recorded a 6.4 per cent rise, while Honda posted a 9.9 per cent increase - representing its first jump of the year - and Nissan incurred a 2.9 per cent slump.
Meanwhile, new figures from the Japan Automobile Dealers' Association indicate that auto sales in the country rose by 2.3 per cent to 198,265 vehicles during August.
The total - which bucked a year-long trend of declines - can be explained by the government offering tax breaks and subsidies under a new scrappage scheme.
Toyota saw its domestic market sales increase by nine per cent, Honda recorded a 13 per cent gain but Nissan, the country's third-largest automaker, posted a 1.4 per cent decrease.
In India, the two biggest companies enjoyed sales rises during the month as lower loan rates from banks, new car models and the upcoming festival season enticed consumers.
Maruti Suzuki sold 84,808 vehicles, representing a year-on-year increase of 42 per cent, mainly due to strong exports of its A-Star small car to a number of European countries.
Sales at Hyundai's local units grew by 11 per cent to 49,521 units, while overall local sales were up by 13 per cent to 24,401 units and exports increased by nine per cent to 25,120.
Moving to Europe, carmakers' association CCFA revealed that new passenger car sales in France jumped by seven per cent to 110,607 units, also buoyed by a scrappage bonus.
With the scheme likely to be extended beyond December, the country's top automaker, Peugeot Citreon, saw sales increase by 17.3 per cent, while Renault enjoyed an 11.1 per cent rise.
Spanish car sales totalled 58,510 units in August - representing just 20 units fewer than the figure recorded 12 months earlier - according to industry association ANFAC.
The group also announced that almost 600,000 units have been sold in the first eight months of the year, which is 32 per cent lower than at the same stage in 2008.
However, the launch of a €2,500 subsidy for new-car buyers who are struggling to obtain credit in May is expected to boost full-year sales by approximately 100,000 units.
An incentive of the same size has also been on offer in Germany for consumers who scrap vehicles which are at least nine years old when they decide to buy a new car.
Europe's largest auto market saw production and exports decline in August, but sales were up by 28 per cent to 275,200 units, according to main industry body VDA.
"We will still see a sales increase in November because there is a pile of applications that has not been cashed in," Ferdinand Dudenhoeffer, Director of the Centre for Automotive Research at the University of Duisburg-Essen, told Bloomberg.
Meanwhile, in the UK, where scrappage incentives are also in place, new car registrations increased by six per cent to 67,006 units, following a 2.4 per cent gain in July.
The Society of Motor Manufacturers and Traders (SMMT) revealed that the total was boosted by strong interest from private buyers and purchases of small, fuel-efficient cars.
Although the figures were the strongest since October 2007, there are still fears that transaction levels will not be maintained once the incentive scheme comes to an end.
SMMT Chief Executive Paul Everitt said: "New car registrations in August increased for the second successive month, providing welcome news for the UK motor industry.
"The scrappage incentive scheme is having a positive impact but with consumer and business confidence still fragile, there remain significant risks ahead."
In Italy, the transport ministry confirmed that auto sales in the country increased by 8.54 per cent to 84,560 vehicles, despite August typically being a slow month due to holidays.
Elsewhere, the largest planning agency in China has predicted that the country will manage to surpass the US as the world's biggest auto market by the end of this year.
Chen Bin, Chief Director of the Industry Coordination Department at the National Development and Reform Commission, said annual sales could rise by 28 per cent.
This would represent a full-year total of about 12 million vehicles, which compares favourably with GM and Ford estimates of 10.5 million sales in the US market.
Mr Bin also claimed in an interview with Bloomberg that Chinese auto sales passed the eight million mark in the first eight months of the year.
Demand for new cars has been stimulated in China after the government included tax cuts and subsidies in a wider, four trillion-yuan economic stimulus package.
"Government incentives have really helped China's auto sales this year," Li Chunbo, a Beijing-based analyst with Citic Securities Co, told the news provider.
"There's also still a lot of demand for vehicles in rural areas [where buyers can receive discounts]."
However, the news was less encouraging in South Africa, where August sales slumped by 23.2 per cent on a year-on-year basis to 33,867 units, according to new figures.
The National Association of Automobile Manufacturers of South Africa and Associated Motor Holdings confirmed that transactions fell by 1.8 per cent in comparison with July.
Brand Pretorius, Chief Executive of automaker McCarthy, explained that the figures highlight the severity of the decline in South Africa's auto industry in the past two years.
"The total vehicle market is currently about half the size of what it was at the peak of the market in 2006 and 2007," he said.
"It is without precedent in recent history. The only consolation is that market conditions are not getting worse - it appears as if we have reached the bottom of the cycle."
Finally, in Brazil, national dealers' association Fenabrave revealed that the country's auto sales during August increased by 7.1 per cent on a year-on-year basis to 247,525 units.
Although the figure was 9.54 per cent lower than the total for July, sales between January and August in Brazil have increased by 3.9 per cent from a year earlier.
source: platinum.matthey
