HOUSTON, Nov. 5, 2020 /PRNewswire/ -- BBVA Research published its October auto sales chartbook, noting vehicle sales have experienced a v-shaped recovery, increasing 36 percent in the third quarter of 2020 from the previous quarter. However, sales are still 10 percent below levels observed in 3Q2019.
According to the report, total new vehicle sales are expected to reach 14.5 million units in 2020, the lowest since 2012. Low interest rates, extended loan terms, higher personal savings and solid residential construction have all contributed to the resiliency of new vehicle sales, as have the rebound in the stock market and an increasing preference for car ownership.
Some segments do remain subdued, including fleet demand, due to sluggish airline and tourism-related activities.
Government support has helped consumers repay auto loans, containing pressures on delinquency rates, though credit standards have tightened nonetheless. There has also been an increased demand for used vehicles, which are better supplied than new units due to pandemic-induced disruptions in new vehicle production, according to the report.
Sales of electric vehicles have also declined, down 41 percent year-over-year as a results of COVID-19, reduction in government incentives and the ongoing conflict between the federal government and the state of California over fuel economy standards.
The chartbook, authored by BBVA Research Principal Economist Marcial Nava, forecasts that sales could be affected in the long run by changes in consumer behavior resulting from the pandemic, including people relocating away from urban areas and the increasing rate of remote work among employees across the U.S.
BBVA Group BBVA (NYSE: BBVA) is a customer-centric global financial services group founded in 1857. The Group has a strong leadership position in the Spanish market, is the largest financial institution in Mexico, it has leading franchises in South America and the Sunbelt Region of the United States. It is also the leading shareholder in Turkey's Garanti BBVA. Its purpose is to bring the age of opportunities to everyone, based on our customers' real needs: provide the best solutions, helping them make the best financial decisions, through an easy and convenient experience. The institution rests in solid values: Customer comes first, we think big and we are one team. Its responsible banking model aspires to achieve a more inclusive and sustainable society.
BBVA USA In the U.S., BBVA is a Sunbelt-based financial institution that operates 641 branches, including 330 in Texas, 89 in Alabama, 63 in Arizona, 61 in California, 44 in Florida, 37 in Colorado and 17 in New Mexico. The bank ranks among the top 25 largest U.S. commercial banks based on deposit market share and ranks among the largest banks in Alabama (2nd), Texas (4th) and Arizona (6th). In the U.S., BBVA has been recognized as one of the leading small business lenders by the Small Business Administration (SBA) and ranked 8th nationally in terms of dollar volume of SBA loans originated in fiscal year 2018.