HOUSTON, Feb. 3, 2021 /PRNewswire/ -- BBVA Research published its January auto sales chartbook, noting vehicle sales went up 5 percent in the fourth quarter of 2020. Sales for the year declined 14.7 percent to 14.5 million units, the lowest since 2012.
According to the report, demand has been supported by fiscal stimulus, low interest rates, and increasing preferences for car ownership. The pandemic has disrupted new vehicle production, tightening supply and allowing manufacturers to reduce incentives and increase profits. As a result, resilient demand and tighter supply has significantly boosted prices in both the used and new-vehicle segments.
Retail auto sales are expected to continue recovering while conversely, the commercial fleet segment will remain subdued until vaccination becomes more widespread and business and leisure travel resumes. Higher prices and weaker commercial fleet sales may prevent new auto sales from returning to the 17 million units threshold in the near term.
The chartbook, authored by BBVA Research Principal Economist Marcial Nava, forecasts that, going forward, U.S. automakers are likely to release more electric and hybrid options to comply with fuel economy standards, while continuing to focus on the more profitable light truck segment. Electric vehicles increased 11 percent in 3Q20, and the outlook for EVs is positive as the Biden administration is expected to bet heavily on clean energy.
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.