Auto sales are down in the U.S. but pricing is heading higher (NYSE:TM)
October 14, 2020
Cox Automotive runs through the state of the U.S. auto industry with Q3 in the books.
The research firm notes Q3 sales volume in total was only down 10% compared to year ago levels, which in normal times might be considered like falling off a cliff, but was a surprise to the upside after the 34% drop in Q2. Two of the biggest brand gainers in Q3 on a percentage basis were Alfa Romeo and Chrysler.
Cox also looks at pricing trends.
“As new-car inventory issues continue to put pressure on the supply side of the equation, average transaction prices continued to climb. In September, the ATP hit $38,973, the 3rd highest monthly ATP in history according to Kelley Blue Book. The ATP was higher in April and June of this year, when volume was low and full-size pickups dominated. If current trends continue, we’re fast approaching the day when the average new car in the U.S. will cost more than $40,000.”
As for EVs, Tesla is given due credit, but there is a reminder that Bolt sales were up 17.6% in the quarter and are up 7.2% YTD.
Here is Cox’s chart on the quarter.
Auto stocks: Toyota (NYSE:TM), Tesla (NASDAQ:TSLA), General Motors (NYSE:GM), Honda (NYSE:HMC), Ferrari (NYSE:RACE), Ford (NYSE:F), Hyundai (OTCPK:HYMLF), Fiat Chrysler Automobiles (NYSE:FCAU), Nissan (OTCPK:NSANY), Daimler (OTCPK:DDAIF), Volkswagen (OTCPK:VWAGY), Subaru (OTCPK:FUJHY).