September’s auto sales in the US stood at 1,428,000 vehicle units. This was ~0.5% lower than US auto sales of 1,435,000 vehicle units in September 2015. In August 2016, auto sales stood at 1,506,000 in the US.
The US auto industry has witnessed good times in the past couple of years. In 2015, US auto sales were at their peak, with ~17.4 million vehicles sold during the year. This certainly boosted the confidence of these automakers. However, it also ignited a debate about US auto sales being at peak levels and a possible downturn in US auto demand going forward. Through September 2016, US auto sales figures stood at ~13.0 million vehicles.
Japanese automakers such as Honda (HMC) and Toyota (TM) also have good exposure to the US auto market. Auto sales are also considered a leading indicator for a country’s economy. Therefore, any slowdown in auto sales is likely to indicate diminishing consumer confidence and a weakening economy. The US is the largest auto market in North America. Mainstream automakers such as General Motors (GM), Ford (F), and Fiat Chrysler Automobiles (FCAU) are highly dependent on the US market, which provides the majority of their revenues. In recent years, all mainstream automakers have been preparing themselves for a race in the development of autonomous vehicles.
