Automakers have fewer reasons to worry for this summer period. In June, U.S. sales of vehicles show signs of decline in comparison to last year’s revenue that hit record-breaking levels. However, SUVs are holding car demand hot by themselves together with sport utility cars.
Toyota and Honda Scored Big Sales Thanks to Their SUVs
According to Autodata Corp., both Toyota Motor Corp and Honda Motor Co registered a spike in car sales. However, their main attractive items were RAV4 and HR-V respectively. Both of them are luxury SUVs which underscores public’s attention for this kind of merchandise only. Thanks to this centerpiece, Honda, Nissan Motor Co, and Toyota shares recorded an increased value in U.S.
A senior analyst at Autotrader which is an online service for auto industry, Michelle Krebs, stated that the market managed to perform well against all the odds. Expectations pointed at 2016 as the crest of profitability in this industry. Therefore, everyone was looking for a disappointing new year. However, things happened the other way around, and 2017 brought an additional year of growth.
Modern Car Demand Doesn’t Include Sedans and Coupes Anymore
The majority of giant automakers had better sales than estimated for the month of June. However, it was pickup trucks and heavy SUVs that saved the industry from a six-month streak of disappointing sales. The circumstances within the professional medium are a plus for this industry. The unemployment rate shrank while consumers increased their confidence in automakers. All these parameters highlight a strong economy that won’t allow car industry to slip so soon.
On the other hand, the interest for sedans and coupes is fading away, especially in America. Not even appealing promotions could reintroduce this trend in latest car demand. Despite this clear shift, the industry still has the capacity to go against odds and score impressive performances. General Motors was the only one in the six global top sellers that missed expectations.
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