TrueCar projects June retail auto sales to expand 7.9% kicking off strong summer-selling season
Month poised for best industry volume in a decade with SAAR rising to 17.4 million units
SANTA MONICA, Calif., June 25, 2015 /PRNewswire/ -- TrueCar, Inc. (NASDAQ: TRUE), the negotiation-free car buying and selling mobile marketplace, projects retail auto sales to consumers will rise 7.9 percent in June from a year ago as robust demand, married with promotions by automakers, kicks off the summer-selling season. Total industry volume, including fleet deliveries, may increase by 6.3 percent.
New vehicle sales, including those to daily rental and commercial fleets, should rise to 1,510,000 units this month from 1,420,994 a year ago, the highest since 2005. Deliveries may increase 2 percent on a daily selling rate (DSR) basis, adjusting for one more selling day compared to June 2014. Moreover, the seasonally adjusted annualized rate (SAAR) for total light vehicle sales should reach 17.4 million units in June, up 2.7 percent from last year's 16.9 million-unit SAAR.
"The summer sales season is starting with a bang," said Eric Lyman, TrueCar's vice president of industry insights. "Consumers are in the market in force and we expect this momentum to continue into July and August, helped by manufacturer summer promotions. New entries to mass and premium small utility segments are driving growth, while Americans' love for trucks and utilities remains steadfast."
TrueCar's network is reflecting strong U.S. retail demand in June, drawing more than 6 million unique visitors across all its platforms. New crossovers are extremely popular with platform visitors, with Honda's new HR-V, Volvo's XC-90 and Ford's revamped Edge seeing the biggest gains. Based on activity to date, consumer interest in those models rose by 205 percent, 54 percent and 16 percent, respectively, compared to May. Among vehicle brands, FCA's Fiat had the biggest monthly jump on the platform.
"Consumer interest in Fiat is up 38 percent from May on our platform and new crossovers are very hot at our network of Certified Dealers," said John Krafcik, president of TrueCar. "With the exception of comparatively low demand for conventional compact and midsize sedans, June sales look solid across the industry. Our dealer partners should see a very strong close to the month, which will be the biggest June in TrueCar's history."
Nissan Motor Co. should lead industrywide light vehicle gains among major automakers, with an expected 12.5 percent increase from a year ago. Subaru, with a 12 percent rise, follows, while FCA may report a 10.1 percent increase for its brands, extending its streak of consecutive year-over-year gains to 63 months. Kia Motors, currently running the Summer's On Us sales event, may post its strongest June ever with 54,000 units.
Incentive spending by automakers averaged $2,846 per vehicle in June, up 3.6 percent from a year ago and up 0.4 percent over May 2015.
Key economic indicators support sustained industry growth. The Conference Board's Consumer Confidence Index® improved by 0.2 point in May, hitting 95.4, while U.S. unemployment in May came in at 5.5 percent, the lowest for the month in seven years. Upbeat new homes sales and orders for manufactured durable goods also underpin economic health.
Other key findings for June sales:
- Expected registration mix of 82 percent retail sales and 18 percent fleet versus 80.8 percent retail and 19.2 percent fleet last June.
- Total used auto sales, including franchise and independent dealerships and private-party transactions, may exceed 3,334,308, up 8.4 percent from June 2014.
Forecasts for the 10 largest manufacturers by volume:
Unit Sales
| Manufacturer |
June 2015 Forecast |
% Change vs. June 2014 |
% Change vs. June 2014 (Daily Selling Rate) |
| FCA |
189,500 |
10.1% |
5.7% |
| Ford |
228,600 |
3.3% |
-0.9% |
| GM |
284,000 |
6.2% |
1.9% |
| Honda |
138,500 |
7.3% |
3.1% |
| Hyundai |
63,500 |
-5.8% |
-9.6% |
| Kia |
54,000 |
6.6% |
2.4% |
| Nissan |
123,400 |
12.5% |
8.0% |
| Subaru |
46,300 |
11.9% |
7.4% |
| Toyota |
207,800 |
3.0% |
-1.1% |
| Volkswagen Group |
52,400 |
4.7% |
0.5% |
| Industry |
1,510,000 |
6.3% |
2.0% |
Retail Unit Sales
| June 2015 Forecast |
% Change vs. June 2014 |
% Change vs. June 2014 (Daily Selling Rate) |
|
| Industry |
1,238,605 |
7.9% |
3.6% |
Total Market Share
| Manufacturer |
June 2015 Forecast |
June 2014 |
May 2015 |
| FCA |
12.5% |
12.1% |
12.4% |
| Ford |
15.1% |
15.6% |
15.3% |
| GM |
18.8% |
18.8% |
17.9% |
| Honda |
9.2% |
9.1% |
9.5% |
| Hyundai |
4.2% |
4.7% |
3.9% |
| Kia |
3.6% |
3.6% |
3.8% |
| Nissan |
8.2% |
7.7% |
8.2% |
| Subaru |
3.1% |
2.9% |
3.0% |
| Toyota |
13.8% |
14.2% |
14.8% |
| Volkswagen Group |
3.5% |
3.5% |
3.5% |
Incentive Spending
| Manufacturer |
Incentive per Unit June 2015 Forecast |
Incentive per Unit % Change vs. June 2014 |
Incentive per Unit % Change vs. May 2015 |
Total Spending June 2015 Forecast |
|
| FCA |
$3,384 |
-1.2% |
3.3% |
$636,906,555 |
|
| Ford |
$2,668 |
-20.0% |
-0.2% |
$609,970,658 |
|
| GM |
$3,729 |
9.8% |
-1.0% |
$1,059,131,550 |
|
| Honda |
$1,979 |
8.5% |
2.1% |
$274,123,900 |
|
| Hyundai |
$2,461 |
34.5% |
5.6% |
$156,244,445 |
|
| Kia |
$2,755 |
18.1% |
1.2% |
$148,793,169 |
|
| Nissan |
$2,962 |
31.4% |
-13.3% |
$365,489,465 |
|
| Subaru |
$743 |
4.4% |
-1.0% |
$34,418,231 |
|
| Toyota |
$2,058 |
0.3% |
1.9% |
$427,618,872 |
|
| Volkswagen Group |
$3,015 |
3.5% |
2.3% |
$157,078,388 |
|
| Industry |
$2,846 |
3.6% |
0.4% |
$4,286,486,347 |
|
Forward-Looking Statements
This press release contains forward-looking statements, including statements regarding projected auto sales, deliveries and other activity industry-wide, as well as the operating performance of TrueCar and its dealer partners for June 2015 and later. Actual results could differ materially from those contemplated by these forward-looking statements. Refer to the Risk Factors sections of TrueCar's annual report on Form 10-K for 2014 and subsequent quarterly report on Form 10-Q filed with the Securities and Exchange Commission for a discussion of the factors that could cause results to differ materially. All forward-looking statements in this press release are based on information available to management as of the date hereof. TrueCar disclaims any obligation to update these forward-looking statements.
About TrueCar
TrueCar, Inc. (NASDAQ: TRUE), the negotiation-free car buying and selling mobile marketplace, gives consumers transparent insight into what others paid and access to guaranteed savings off MSRP from TrueCar Certified Dealers. TrueCar's network of more than 10,000 trusted Certified Dealers is committed to providing upfront pricing information and a hassle-free buying experience. TrueCar powers car-buying programs for some of the largest U.S. membership and service organizations, including AARP, American Express, AAA and USAA. Not all program features are available in all states. TrueCar is headquartered in Santa Monica, California, with offices in San Francisco and Austin, Texas. For more information, go to www.truecar.com. Follow us on Facebook or Twitter.
TrueCar media line: +1-844-469-8442 (US toll-free) | Email: [email protected]
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SOURCE TrueCar, Inc.
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