Analysts expect the July auto sales results in the US will put away worries that the auto industry in the region will stumble in the second half of 2013.
Major automakers will release July sales number today, August 1st, and most analysts expect results to be somewhere around 15% above the same period last year, reaching 1.3 million units. Consulting firm LMC Automotive expects the increase in the second half of the year to push full-year sales to around 16 million, a level not seen since 2007, before the recession.
“We’re almost at a pre-recession pace that looks like it may have the momentum that will carry it through the second half of the year and beyond,” said Alec Gutierrez, senior market analyst for Kelley Blue Book, one of the analysts who increased his forecast.
Some of the factors which drove sales up are: increasing consumer confidence, rising home values, improving economy and low interest rates. Automakers have also managed to attract customers by offering appealing new products in each segment. Truck sales are expected to have increased 30% last month.
Automakers have also rose incentives such as low-interest loans and rebates, with Hyundai and Kia increasing incentives by 66%, GM 22%, Ford 11%, while Nissan and Honda cut incentives. Customers have begun to stretch out loans to get lower monthly payments with a higher price.