Dec. 2 (Bloomberg) — Hyundai Motor Co. and Nissan Motor Co. led the first monthly gain in U.S. auto sales since government stimulus measures ended, signaling buyers are returning to showrooms as the economy stabilizes.
Hyundai’s sales surged 46 percent in November and Nissan’s rose 21 percent, industry researcher Autodata Corp. said. Toyota Motor Corp. posted a 2.6 percent increase, exceeding analyst estimates. The annual sales rate was 10.93 million vehicles, up from 10.41 million a year earlier, when seasonally adjusted for two fewer sales days in November 2009, according to Autodata.
The results add to evidence that a gradual economic recovery is taking hold, after the deepest recession since the Great Depression led to the bankruptcies of General Motors Corp. and Chrysler Group LLC. U.S. auto sales dropped the previous two months after being boosted in August by the government’s “cash for clunkers” rebate program that ended Aug. 24.
“Sales rising without the help of government incentives shows the economy is recovering,” said Mitsuru Kurokawa, an auto analyst with consulting company IHS Global Insight in Tokyo. “Compact models from Asian carmakers and Hyundai’s relatively affordable models are benefiting.”
November’s annual sales pace exceeded the average estimate of 10.5 million vehicles in a Bloomberg survey of seven analysts. Industrywide sales totaled 746,928 units in November, compared with 746,789 a year earlier, according to Woodcliff Lake, New Jersey-based Autodata.
Making Strides
“We’re excited to see a year-to-year increase without clunkers for the first time this year,” Bob Carter, group vice president of Toyota’s U.S. sales unit, said in a conference call with reporters yesterday. Honda Motor Co., Japan’s second- largest automaker, had a 2.9 percent decline for the month.
“The industry is starting to make some strides,” said Michael Robinet, an analyst at CSM Worldwide Inc. in Northville, Michigan. Automakers are at a “turning point” as they focus on ensuring profitable sales, not just higher volumes, he said.
Manufacturers, suppliers and dealers use the annual sales rate to compare monthly totals by accounting for seasonal patterns. U.S. sales were 13.2 million in 2008 after averaging 16.8 million this decade through 2007. August’s 14.09 million was 2009’s highest rate, and the lowest was February’s 9.11 million.
Unit Sales
Analyst estimates are adjusted for last month having 23 sales days, two fewer than in November 2008. Some automakers report adjusted figures, which would be about 8 percentage points higher than the unadjusted numbers used by Bloomberg.
On that so-called daily selling rate basis, Honda and Nissan all exceeded the adjusted average estimates of five analysts surveyed by Bloomberg.
Toyota City, Japan-based Toyota reported 133,700 U.S. deliveries while Tokyo-based Honda’s decreased to 74,003.
Toyota added sales even as the company announced a record recall of more than 4 million vehicles in North America, after drivers reported cases of sudden acceleration.
“They’ve got that underlying strength,” said Jim Hossack, an industry analyst at researcher Autopacific Inc. in Tustin, California. “They’ll blow by this recall.”
Yokohama, Japan-based Nissan said sales rose to 56,288 vehicles. Nissan spends about $2,000 to $2,500 per vehicle on incentives, compared with $1,500 to $1,700 at Honda and Toyota, according to Jesse Toprak, head of industry analysis for TrueCar Inc., a vehicle pricing and data service in Santa Monica, California.
Hyundai, Kia
“With economic uncertainty, consumers are more likely to respond to incentives,” Toprak said.
Automakers benefited from a 5.3 percent increase in demand for cars compared with a 4.9 percent drop in sales of trucks and sport-utility vehicles, according to Autodata.
Seoul-based Hyundai, South Korea’s largest automaker, said it sold 28,045 vehicles, led by a 93 percent jump in sales of Accent small cars and a 52 percent increase for Sonata sedans. Kia Motors Corp., a Hyundai affiliate and South Korea’s second- largest carmaker, reported an 18 percent increase.
“The story is Hyundai and Kia,” said Hossack. “They’re both making inroads while Toyota is dealing with a number of issues.”
Hyundai is strong due to quality, superior warranties and better prices, while Kia is offering lower prices in a tough economy, he said. Both automakers can continue winning market share, he said.
Subaru, the auto brand of Japan’s Fuji Heavy Industries Ltd., followed Hyundai with a 24 percent sales gain. Subaru has benefited from the introduction of several updated models this year, IHS’s Kurokawa said.
Mazda Motor Corp., Japan’s second-largest car exporter, said it sold 14,255 vehicles in the U.S. last month, up 0.9 percent.
To contact the reporters on this story: Alan Ohnsman in Los Angeles at aohnsman@bloomberg.net; Alex Ortolani in Southfield, Michigan at aortolani1@bloomberg.net
*source: bloomberg.com
