US: experts believe auto market will finish year hitting record pace image

Even as the worldwide economies are full of uncertainties, the US automotive industry continues its uninterrupted rise and has prompted analysts to rethink on a more positive note their early-year predictions.

Thanks to the steady growth seen during the spring and summer months, and with the seasonally adjusted annual selling rate averaging 17.5 million autos from May through August, LMC Automotive has decided to modify its full year provision for the total light-vehicle market to 17.2 million units compared to the previous 17.1 million, while the retail light-vehicle sales could hit 14.1 million autos instead of the previously expected 14 million. Analysts at Moody’s also believe deliveries of new cars and trucks will soar by 2.4 percent next year after growing 2.8 percent this year. “Sales the previous three months have significantly exceeded expectations, so if interest rates remain low, auto sales in 2016 will get a further boost from an economy that should accelerate,” comments Jeff Schuster, senior vice president of forecasting at LMC Automotive.

The auto sales increase is also a boom for the domestic production – North American production in August 2015 reached 1.58 million units, up 9.5 percent from the same period last year. And the US made up 70 percent of the increase thanks to increased SUV and truck demand. Moody’s claims vehicle sales will not be significantly affected during 2016, with a stable outlook on the global automotive manufacturing industry as they see a rebound from the smallish growth of 1.2 percent expected this year to a surge of 2.5 percent in 2016.