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<ul><li>Latest data released by SIAM showed a continuing downward trend for the auto industry in India.</li><li>There was a downfall of 21% in the purchase of passenger vehicles sold in May, from 3 lakh units to 2.39 lakh units in the same month a year before.</li><li>In April, passenger vehicle sales were down by 17%.</li><li>The overall Commercial Vehicles segment registered a decline of 8.05% in April-May 2019. </li></ul>The sale of passenger vehicles declined by 18.82% in April-May 2019 over the same period last year, the worst in 18 years, according to data by Society of Indian Automobile Manufacturers (SIAM). Within the Passenger Vehicles (cars, UV’s/SUV’s,and vans), the sales for Passenger Cars, Utility Vehicle &amp; Vans declined by 22.98%, 6.15% and 28.57% respectively in April-May 2019, compared to the same period last year. The data showed a downfall of 21% in the sale of passenger vehicles in May, 2019 from 300,000 units to 239,000 units in the same month in 2018. As per <a href="https://timesofindia.indiatimes.com/business/india-business/passenger-vehicle-sales-decline-most-in-18-yrs/articleshow/69749043.cms">experts </a>, different factors may be contributing to this lowering trend in <keyword id="47168" type="COMPANY" weightage="20" keywordseo="Car-sales">car sales</keyword>. First being the declining health of the Indian economy. The GDP growth figure for the third quarter of FY19 was merely 6.6% — the lowest in five quarters. This can be a worrying situation for the government as well, because private consumption has been a strong pillar of India’s growth story, which is now slumping. Amongst other factors, slowdown in urban hubs is being attributed to the popularising shared mobility like Ola and UBER. Rising congestion on roads and improvement in public infrastructure are also important to this phase. Despite the addition of new models, such as Hyundai’s hatchback Santro, Maruti’s tallboy WagonR, TATA’s Harrier off-roader, and Mahindra’s Marazzo and XUV 300 SUV’s, buyers are not warming up to the new launches. In rural areas the slowdown in sales is being attributed to the stressed farm loans. In a statement, Director General of SIAM, Vishnu Mathur, <a href="https://timesofindia.indiatimes.com/business/india-business/passenger-vehicle-sales-decline-most-in-18-yrs/articleshow/69749043.cms">said </a>the “Buyers need affordability. The situation is very serious.” Mathur added that the industry is saddled with heavy inventory, and despite offering deep discounts and freebies, companies do not see fresh investments and expansion till the situation improves. The introduction of the new BS6 (Bharat Stage 6) emissions regulations from 1 April 2020, new technology will be needed to keep emissions in check, in particular for new diesel engine vehicles. These new add-ons are said to increase the prices of diesel cars even further and increase the gap between a new petrol car and a new diesel car by nearly ₹250,000.

Car sales in India have slumped to a 18-year low even after deep discounts

<ul><li><keyword id="44883" type="CITY" weightage="20" keywordseo="Maruti-Suzuki">Maruti Suzuki</keyword> has reported a drop in 24% in sales in September as compared to the same month last year.</li><li>Indian <keyword id="1108326" type="PERSON" weightage="20" keywordseo="auto-manufacturers">auto manufacturers</keyword> have reported a continuous decline in sales for over a year now. </li><li>Maruti Suzuki had also slashed prices to align with the Government’s plans to revive demand. </li></ul>There seems to be no end to the woes of the Indian auto industry. Maruti Suzuki reported a drop in 24% in sales in September as compared to the same month last year. It sold a total of 122,640 units in September 2019. Indian auto manufacturers have been reporting a consistent decline in monthly sales for over a year now. 
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 “My belief is that we are near the bottom of the downward cycle and the economy, and <keyword id="47168" type="COMPANY" weightage="20" keywordseo="Car-sales">car sales</keyword> should start to accelerate in the near future,” Marutii Suzuki’s chairman RC Bhargava <a href="https://www.thehindu.com/business/Industry/auto-industry-is-near-bottom-of-downward-cycle-maruti-suzuki-chairman-bhargava/article29267803.ece">said at the company’s annual general meeting earlier in August.</a> However, the situation doesn’t seem to have changed in spite of steep discounts and a festive season around the corner. Maruti Suzuki slashed 3,000 contractual jobs in August. Earlier in September, Maruti Suzuki also slashed prices to align with the government’s plans to revive demand. It reduced the price of select models like Alto 800, Alto K10, Swift Diesel, Celerio, Baleno Diesel by ₹5,000. “This reduction of price will be over and above the current promotional offers for the company’s vehicle range,” Maruti Suzuki said.

Maruti Suzuki car sales see no respite for the festive season, decline by 24% in September

<ul><li>Market research reports say that July is going to see car sales continue to remain weak across all segments.</li><li>This also means that discounts per car are increasing heavily, Maruti Suzuki is leading the monthly discounts race. </li><li>Most car manufacturers saw their sales decline in the Q1 of FY20, also affecting their profits.</li></ul>Car sales have been slipping for the last eight months, and experts are predicting a tepid July month as well. As expected, manufacturers are rolling in discounts every month, to help push sales. Maruti Suzuki is leading the way with most ‘total cash discounts’ offered to consumers. While Alto models saw an 8% increase in discounts as compared to June, the Celerio Automatic and Dzire Diesel versions saw a steep increase of 23% and 27%. Weak sales to continue July isn’t going to bring in any cheer for carmakers who are hoping for good sales, according to a research report released by Emkay Global. “Volume performance is expected to remain weak across segments due to a high-base effect, increasing cost of vehicle ownership, monsoon deficit and financing issues,” the report said. <table style="border-width: initial; border-style: none; width: 468pt;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;">Company </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;">Expected YOY drop in Sales </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;">Maruti Suzuki </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;">20.9% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;">M&amp;M Auto </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;">7.4% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;">Tata Motors </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;">12.1% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;">Hero Motocorp </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;">11.7% </td></tr></tbody></table> The quarterly earnings reports of auto manufacturers also spell doom for the industry. India’s largest car manufacturer Maruti Suzuki’s profits fell by 27.3%. It total sales for the first quarter of FY20 fell by 17.9% as compared to the same quarter last year. Meanwhile, <keyword id="42747" type="CITY" weightage="20" keywordseo="Tata-Motors">Tata Motors</keyword>’ saw its cumulative income (Jaguar Land Rover included) dropped by 20%. And, the manufacturers are beginning to blame the government. “There is no demand and no private investment, so where will growth come from? It doesn’t fall from the heavens. The auto industry is going through a very difficult period. Cars, commercial vehicles and two-wheelers are going through a rough patch,” Rahul Bajaj, Chairman and MD of Bajaj Group said at his company’s annual general meeting. See Also: <a href="https://www.businessinsider.in/Narendra-Modi-has-a-new-problem-big-corporates-and-moneybags-are-angry/articleshow/70450878.cms">Narendra Modi has a new problem – big corporates and moneybags are angry</a>

Deep discounts fail as car sales are set to fall for the ninth straight month in July

<ul><li><keyword id="4306161" type="PERSON" weightage="20" keywordseo="Cars24">Cars24</keyword> has announced its first franchisee in Surat. </li><li>The startup plans to breakeven by December 2019. </li><li>It plans to invest ₹1-1.5 million into a franchise depending on the location. </li></ul>Indian used cars startup Cars24 is adopting the franchise model to expand across the country. This will help them set-up 300 outlets in tier 2, 3 and 4 cities over the next two years. The startup plans to breakeven by December 2019, and the franchising model could help ramp up operations. Strengthening its presence in tier 2 cities, it also opened a franchisee branch in Surat – the second largest automobile market in India. It plans to invest ₹1-1.5 million into a franchise, depending on the location. It is shortlisting partners after putting them through a lens, and clearing only one from every 200 applications. “Our key objective is to address the challenges that are faced by sellers and buyers in non-metro cities. We are filling the vast gap of a dependable partner in the used car segment and associating the entrepreneurial spirit and local talent of non-metro cities with our platform for seamless execution,” said Mehul Agarwal, Co-founder and COO, CARS24. Cars24 sells over 13,000 cars every month through its platform. In over four years, it sold 1.6 lakh cars. It is now present in 35 cities with 150 branches, Cars24 plans to be in 70 cities with 230 branches, by 2019. “We only have 2% market share of the $30 billion used car market. In India, 5 million used cars are sold every year. Our objective is to take this 2% to 20% over the next 5 years,” Vikram Chopra, co-founder and CEO of Cars24 had said in an earlier interview with Business Insider. This development from Cars24 comes at a time when the Indian auto industry is witnessing a slowdown in the sales of new cars. The country’s largest car maker <a href="https://www.livemint.com/auto-news/maruti-suzuki-sales-down-14-in-june-at-124-708-units-1561984801149.html">Maruti Suzuki </a>too reported a 14% decline in sales in June. Passenger vehicle sales have been suffering for the last eight months. <a href="https://www.businessinsider.in/june-monthly-car-sales-data-points-to-a-severe-slowdown-in-india/articleshow/69985355.cms">Consumer sentiment has suffered due to</a> cost increases amid strict safety regulations, delay in monsoon, rural stress, slowing economy and liquidity constraints. See Also: <a href="https://www.businessinsider.in/news/auto-sales-continue-to-slip-for-eight-straight-months-making-revival-tough/articleshow/70034595.cms">Auto sales continue to slip for eight straight months, making revival tough</a>

EXCLUSIVE: Cars24, a startup selling used cars, wants outlets in 300 cities and is looking for potential franchisees

Six out of the top ten most selling cars in India in October are from Maruti Suzuki

<ul><li>Indian car manufacturer <keyword id="6357096" type="UNKNOWN" weightage="20" keywordseo="Mahindra-Mahindra">Mahindra &amp; Mahindra</keyword> announced that the price of its vehicles would go up by ₹36,000 from July 1. </li><li>The price hike by companies is being attributed to the new safety norms and the BS VI norms followed by the Indian government. </li><li>However, car sales continue to see a decline in India.</li></ul>In India, car sales have been sliding with almost every other automobile giant reporting a decline in sales in the past few months. However, if you thought that would make cars cheaper, well, think again. Car prices are only rising, thanks to the new safety norms which have been made mandatory. Automaker Mahindra &amp; Mahindra announced on Wednesday that it would be raising the prices of its personal vehicles by up to ₹36,000 across models from July 1. But the company is not alone. Maruti Suzuki had already declared a price hike for its new Swift and WagonR. Others like Honda and Tata Motors too have indicated the same. “Mahindra SUVs that will take a substantial price increase are the Scorpio, Bolero, TUV300 and KUV100 NXT, while brands such as the XUV500 and Marazzo will increase prices marginally,” Mahindra said in its filing as reported by IANS. The Indian government had announced the Bharat Stage VI norms for emission regulation. The norms will be adopted by April 2020, however companies had said that the adoption will result in a price-hike. According to <a href="https://www.financialexpress.com/industry/bs-vi-norms-car-prices-to-surge-sharply/1423128/">reports</a>, complying to the norms meant a 10% price hike for cars. Meanwhile, <keyword id="424067" type="PERSON" weightage="20" keywordseo="Car-sales-in-India">car sales in India</keyword> have had a sloppy run in the past few months. In <a href="http://overdrive.in/news-cars-auto/passenger-car-sales-in-india-dip-by-20-5-percent-in-may-2019/">May 2019</a>, passenger car sales declined by 20.5%. One of India’s biggest car manufacturers, Maruti Suzuki had <a href="https://www.financialexpress.com/auto/car-news/may-2019-car-sales-maruti-suzuki-reports-22-decline-in-sales-for-may-2019/1596276/">reported</a> a decline by 21% in its car sales for May. See Also: <a href="https://www.businessinsider.in/budget-2019-proposal-lower-tax-likely-on-cars/articleshow/69723060.cms">With 32 million jobs at stake in India’s auto sector, the Modi government may ease tax burden on cars</a>

Car sales are woefully slow in India but prices are rising due to new green norms

<ul class="summary-list"><li>Only 4,321 new <keyword id="20632" type="ORGANIZATION" weightage="60" keywordseo="Cars">cars</keyword> were registered in the <keyword id="6354868" type="COUNTRY" weightage="60" keywordseo="UK">UK</keyword> last month — the lowest that figure has been since 1946.</li><li>Of those, only 871 were from retail customers.</li><li>The UK is on track to having its worst year in <keyword id="47168" type="COMPANY" weightage="60" keywordseo="Car-sales">car sales</keyword> since 1992.</li><li><a href="https://www.businessinsider.com/?hprecirc-bullet">Visit Business Insider's homepage for more stories</a>.</li></ul>The UK just suffered what is likely its worst month of car sales since the end of World War II.New-car registrations in April declined sharply by 97%, which lines Britain's automotive industry up for its worst sales year in almost three decades, according to the <a href="https://www.ft.com/content/a97e0730-d94f-4b64-89c9-9c0a410f9281">Financial Times</a>. The Society of Motor Manufacturers and Traders claimed that a measly 4,321 cars were registered in April, which is the lowest monthly figure since 1946. April 2019, conversely, saw 161,064 cars sold.What's bleaker still is that of those 4,321 cars sold, only 871 of them went to retail customers. The rest were purchased by fleets or businesses.Car sales in the UK, per the Financial Times, are expected to decrease to 1.68 million, which would make 2020 the worst year since 1992. It'd also be down from the 2.3 million cars sold in 2019 — a dip of more than 600,000 vehicles.Poor sales in the UK are similar to those in Italy and Spain, which have also been hit by dealership and factory closures due to the <keyword id="8763838" type="UNKNOWN" weightage="60" keywordseo="covid-19">COVID-19</keyword> pandemic. Bentley, Jaguar Land Rover, PSA Group, and Aston Martin have all <a href="https://www.cnet.com/roadshow/news/covid-19-automakers-plant-shutdowns-coronavirus-pandemic-return-date/">suspended UK production</a> in one way or another.The Financial Times notes the Tesla Model 3 was the UK's best-selling car in April, but that was because Tesla uses a direct sales model and wasn't affected by dealer closures.Slowly, though, plants are reopening. Volkswagen, for example, <a href="https://www.businessinsider.com/volkswagen-opens-factory-in-wolfsburg-germany-after-covid-19-closure-2020-4">reopened its Wolfsburg, Germany, plant at the end of April</a>. But it's unclear how quickly demand will return, as many buyers are still staying at home and unsure of their financial futures. Read the original article on <a href="https://www.businessinsider.com/uk-car-sales-fall-97-percent-april-2020-5">Business Insider</a>

UK car sales plunged 97% in April, with private customers only registering 871 new vehicles

<ul><li>With car sales being woefully slow, Indian <keyword id="1108326" type="PERSON" weightage="20" keywordseo="auto-manufacturers">auto manufacturers</keyword> are going to see the weakest Q1 results in a decade, say analysts. </li><li>A CLSA report has said that Q1 EBITDA is going to fall by an average of 28% for all auto companies.</li><li><keyword id="44883" type="CITY" weightage="20" keywordseo="Maruti-Suzuki">Maruti Suzuki</keyword> cut production for the fifth consecutive month in June due to lack of demand.</li></ul>Indian automakers have been witnessing a massive slowdown in sales and that has resulted in stock analysts calling it the first quarter, their toughest quarter in a decade. CLSA, the capital markets research firm, has said that first quarter results for FY 20 is likely to be the weakest in a decade for the auto sector because of depressed volumes and margin pressure. The report further mentions that for the first quarter, pre-tax profits would fall by 28% year-on-year for the entire industry. While Maruti and Ashok Leyland could see their quarter’s profits decline by 35-43%, Eicher, <keyword id="45224" type="CITY" weightage="20" keywordseo="Mahindra">Mahindra</keyword> and Motherson Sumi could see a 14-21% decline. “We remain cautious on the sector and have sell ratings SELLs on 70% of our stock coverage; on a relative basis, we continue to prefer Maruti , Eicher, and Motherson,” said the report. <keyword id="424067" type="PERSON" weightage="20" keywordseo="Car-sales-in-India">Car sales in India</keyword> have been falling for the last past few months. In May 2019, passenger car sales declined by 20.5%. One of India’s biggest car manufacturers, Maruti Suzuki had reported a decline by 21% in its car sales for May. In June, it fell again by 14%. In fact, the auto manufacturing giant cut production for the fifth consecutive month in June due to lack of demand. Its shares fell too, shedding ₹7,000 crore in market value in early July.

A global investment firm has 'SELL' rating on 70% of Indian car makers because sales may not pick up speed

<ul class="summary-list"><li>Mark Beneke is the co-owner and acting sales manager at Westland <keyword id="12466990" type="UNKNOWN" weightage="60" keywordseo="auto-sales" source="Orion">Auto Sales</keyword> in Fresno, California.</li><li>He bought his father out of the business in 2015 and runs a "buy here, pay here" model.</li></ul>This as-told-to essay is based on a transcribed conversation with Mark Beneke, a 30-year-old <keyword id="12466989" type="UNKNOWN" weightage="60" keywordseo="car-dealer" source="Orion">car dealer</keyword> from Fresno, California, about his business. It has been edited for length and clarity.Alongside my brother Eric, I own Westland Auto Sales. We took over the business in 2015 and have grown the portfolio by over $1 million this year alone to a total of $5 million (it was $500,000 in 2015).<h2>I was born in El Salvador, but in 2000 my family immigrated to the United States in search of the American Dream </h2>My father started Westland Auto Sales in 2007, which he owned and worked at until my brother and I bought him out in 2015.Our company is different from traditional car dealerships in that we're a "buy here, pay here" dealership, which means we don't finance our cars through lenders but in house. Using this model means a higher return on investment, but a somewhat riskier business due to the type of clientele.<h2>For the past five years, I've been the acting sales manager </h2>Each morning begins with a meeting that includes our sales team and lasts anywhere from 15 minutes to an hour, depending on the day. We disperse any leads and finalize the paperwork for any deals we have pending. Because we do all of the underwriting in house, we have to evaluate each customer based on income and other contributing factors. From there, we make sure the sales team is taking calls with customers, greeting them in store, and leading them through the steps to buy a car. We have about 15 employees (up from seven in 2015), with four currently in sales roles.<h2>One of the reasons we've been successful is because we're able to differentiate ourselves - we never try to compete with bigger dealerships or those that work with lenders </h2>We're trying to become the best buy here, pay here dealership in our area.With the buy here, pay here model, our clientele tends to be lower income or people with poor credit scores that can't get a loan anywhere else. We treat our customers like people. To us, they are top-tier clients. We care, and they see that.We also provide a free warranty for customers and start with down payments as low as $500 - many in-house dealerships in the area don't. Other buy here, pay here dealerships require 50 or 60% down and sell older cars with hundreds of thousands of miles on them. It's a "bleed" model - you're bleeding the customer for everything they've got. You don't care whether they come back. We wouldn't feel good about running our business that way.<h2>Our primary method of acquiring inventory is going through retail auctions, which are only available to licensed dealers </h2>We also take trade-ins, though the supply-chain effects of the pandemic have impacted our business, too. Pre-pandemic, we'd buy around 15 cars per week to sell on our lot - now we're purchasing about three. The prices have also increased across the board. What you might have bought for $10,000 a couple years ago may be closer to $13,000 or $14,000 now. Once we identify and purchase the vehicles we're interested in and those that fit the criteria of what we sell at the dealership - family cars, SUV's, sedans, and trucks - we bring them back to our in-house shop to do a safety check. We fix up those that need it, then put them out on the lot for sale.<h2>How many cars we have on our lot depends on the time of year </h2>Near the end of the year we stock up on new inventory for tax season, our busiest time of year. When people get their tax return, the first thing a lot of them want to do is buy a new car. At the start of Q4, we're usually sitting on about 100-120 cars. By January, we may have 130-140. But by May, we'll be back down to 70. Right now, because of supply-chain issues, we're about at 70 right now.Even so, we're currently focused on increasing sales. The amount of sales we average per month is about 35 cars for the entire dealership, which puts us at a good increase on our portfolio already. We recently increased our "quota" of <keyword id="12466988" type="UNKNOWN" weightage="60" keywordseo="car-sales" source="Orion">car sales</keyword> per month to 42, and so far we've met our goals.<h2>Our average revenue per month is upwards of $500,000</h2>And aside from having to close for a month or two in the beginning of the pandemic, we're seeing the same amount of buyers now than we were pre-pandemic.In July, my brother and I recruited two new hires to take over our front-facing roles at the dealership. While we're still involved in the day-to-day, we focus more on the backend of the business - growing, with the ambition of opening additional locations.<h2>Working with family is great because you know you have somebody you can trust </h2>You can depend on them to pull their weight and follow through. You know the way they work, and you have each other's best interests in mind. And even though we've had our disputes, we've always been able to settle it really quickly. We understand and respect each other's roles in the business.And although we've created a great business, after working in the car industry for over a decade, I can say that a car is just <keyword id="11894924" type="UNKNOWN" weightage="100" keywordseo="transportation" source="Orion">transportation</keyword>. Luxury vehicles - while gorgeous - are just the same as a little Chevy Sonic. While we still get excited about certain vehicles coming into the lot, cars don't wow us anymore. Still, we can't wait to see Westland Auto Sales grow and expand to serve more people.

I'm a 30-year-old car dealership owner in California. We make up to $500,000 a month and haven't seen a decline in customers.

The resurgence of US <keyword id="46211" type="UNKNOWN" weightage="60" keywordseo="Auto-sales">auto sales</keyword> is one of the big stories of the recovery.
In February, auto makers sold light vehicles at a 15.4 million unit annualized rate.
This chart is from <a href="http://feedproxy.google.com/~r/CalculatedRisk/~3/HCVe_5apW8U/us-light-vehicle-sales-increase-to-154.html">Calculated Risk</a>.
<div class="image-container" style="width:600px"><div class="image"></div><a href="http://feedproxy.google.com/~r/CalculatedRisk/~3/HCVe_5apW8U/us-light-vehicle-sales-increase-to-154.html">Calculated Risk</a></div>
How high can it go?
A new note from Citi's Itay Michaeli says it can easily get to 16-17 million. His note is titled: 11.8 Million Reasons to Be Bullish on SAAR.
Michaeli says that despite the big surge in car sales, we're still seeing below-average fleet scrapage. There's a lot of pent-up demand.
If Someone Asked You — In 2012, U.S. auto sales rose a robust 13% to 14.4 million. The popular explanation was that an aging fleet was finally releasing pent-up demand. Subscribing to this explanation, one would think that the U.S. scrap rate must have surely gone up last year, right? Wrong. According to fresh Polk data, the U.S. apparently scrapped only 4.7% of light vehicles last year (11.8mln), down from 5.0% the prior year (5.2% avg. since ‘02). So why did auto sales rise? Because of the very improvement in vehicle density that our Sep-11 density survey originally predicted (“Do They Want to Drive?”). In other words, for the first time since 2007, the U.S. vehicle population managed to grow by 1.0%, which is more in-line with the driver population.
So What Does This Mean? — Vehicles continued to age last year (now 11.4yrs old) despite a “strong” SAAR, meaning that investors likely haven’t missed the pent-up demand cycle—in fact it doesn’t appear like it’s even begun. This may be very good news for the U.S. auto cycle, so long, of course, as vehicle density doesn’t spoil the party again (our survey closely tracks the 2yr density outlook, next survey due out in May). But with &gt;251 million light vehicles on the road, returning to a mid-5% scrap (avg. 2002-08) + ~1% population growth easily gets us to a 16-17 million SAAR.
SEE ALSO: <a href="a">The 19 best-selling cars in America &gt;</a>

11.8 Million Reasons To Be Bullish On US Car Sales

<ul class="summary-list"><li>Pickup truck sales outpaced passenger <keyword id="47168" type="COMPANY" weightage="60" keywordseo="Car-sales">car sales</keyword> in April, according to Bloomberg.</li><li>Five years ago, car sales had an advantage of about 500,000 units per month.</li><li>Strong truck sales are, in part, due to attractive financing options.</li><li>Detroit's Big Three are also prioritizing truck sales over small <keyword id="20632" type="ORGANIZATION" weightage="60" keywordseo="Cars">cars</keyword>.</li><li><a href="https://www.businessinsider.com/?hprecirc-bullet">Visit Business Insider's homepage for more stories</a>.</li></ul>US buyers' unquenchable thirst for pickup <keyword id="47193" type="ENTERTAINMENT" weightage="60" keywordseo="trucks">trucks</keyword> has finally come to a head: Pickups officially outsold regular passenger cars in the US in April. It was already trending this way, so it's not really a surprise that it's now happened.Pickups sold by market power hitters such as Ford, General Motors, and Fiat Chrysler surpassed cars by more than 17,000 units last month, reports <a href="https://www.bloomberg.com/news/articles/2020-05-05/pickups-outsell-passenger-cars-in-u-s-for-the-first-time-ever">Bloomberg</a>, citing data gathered by market-research company Autodata Corp. The data shows that just five years ago, cars were outselling trucks by about 500,000 units per month. Truck sales in the US have been trending upward for years now while car sales slide the opposite way. It should be noted, however, that auto sales in general are weird right now: <a href="https://www.businessinsider.com/q1-car-sales-tumble-in-us-as-coronavirus-rocks-economy-2020-4">Sales reports were miserable</a> for most manufacturers aside from Tesla in Q1 due to the COVID-19 pandemic and that trend mostly continued into April. Either way, Bloomberg credited a few factors for the trucks' newfound market domination.First, it said deliveries of both pickups and regular cars stemming from Detroit are focused more in the middle of the country rather than in the coastal regions — which also happen to be the states that introduced stay-at-home orders later than those on the coasts. Second, Bloomberg reports that truck sales were helped along with 0% financing offers that could stretch out the loans for as long as seven years. "Even in a pandemic there are some offers too good to pass up," Charlie Chesbrough, Cox Automotive's senior economist, told Bloomberg on Monday. "Many of our daily tracking numbers were showing strong interest in 0% financing offers, as well as a lot of interest in pickup trucks."Additionally, <a href="https://www.businessinsider.com/cheap-gas-costs-95-cents-at-some-stations-oil-price-2020-3">gas prices have been very low</a>, so it's likely buyers aren't immediately worrying about buying what's efficient — only what's big.US buyers have shown <a href="https://jalopnik.com/strong-u-s-new-vehicle-sales-are-ending-soon-but-truck-1831485047">an unprecedented appetite for pickup trucks</a> and other large vehicles in recent years, and automakers have responded in kind. In 2018, General Motors made the decision to <a href="https://www.consumerreports.org/general-motors/gm-to-drop-some-sedans/">drop sedans and small cars</a> such as the Chevy Volt, Cadillac CT6, Cadillac XTS, Chevy Cruze, Chevy Impala, and Buick LaCrosse in order to focus more on SUVs and trucks. Following that, Buick announced it would drop the Regal, which will soon leave the brand with <a href="https://www.caranddriver.com/news/a30120611/buick-regal-dead/">an all-SUV lineup</a>.Ford, too, <a href="https://techcrunch.com/2018/04/25/ford-to-stop-selling-every-car-in-north-america-but-the-mustang-and-focus-active/">announced in 2018</a> that it would stop selling passenger cars, with the exception of the Mustang and the Focus Active, and saw 90% of its North American portfolio devoted to trucks, SUVs, and commercial vehicles. Last year, Fiat Chrysler announced a <a href="https://www.reuters.com/article/us-fiat-chrysler-investment/fiat-chrysler-to-invest-45-billion-in-michigan-to-add-new-jeep-suv-models-idUSKCN1QF23E">$4.5 billion investment</a> for new Jeep SUVs. And despite negative FCA sales overall, Ram pickup <a href="https://www.autonews.com/sales/fca-q1-down-10-ram-black">sales still increased by 7% in the first quarter of 2020</a>.So, congratulations to the trucks. You've won.Read the original article on <a href="https://www.businessinsider.com/pickup-trucks-outsell-passenger-cars-april-us-sales-first-time-2020-5">Business Insider</a>

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