![Honda admits: the auto market slowly declines](https://repokar.com/public/files/manager/blog/629569bf04c08d219359be82b224b728.jpg)
It is absolutely clear already that the U.S. car market won't set another record this year, and will decline from 2015's record in the next few years, these words were finally told by the Honda Motor Co's top American sales executive.
The industry will sell 17.3 million to 17.5 million light vehicles this year, this could almost reach the last year's record of 17.5 million. Honda’s John Mendel told reporters Thursday on a conference call. Beyond 2017, sales should run between 16 million and 17 million, he said, barring any major shocks, such as a sharp increase in oil prices or tightening of credit. Sales may look poised to retreat after six years of growth, and that is totally6 normal, but automakers must still be able to do well, especially those like Honda or GM, which sell more to retail customers. Transactions with individual buyers, rather than rental-car companies and others snapping up discounted models in bulk, are the best measure of true demand, he said.
The industry could slide into a price war, since incentives jumped 12% this year through August. And the absolute value of discounts rose to more than $3,000 per vehicle, they are somewhat offset by record high transaction prices as the market has shifted to larger vehicles loaded with communications and driver-assist technology. Honda’s brand incentives have dropped 22 percent this year through August.