Record Sales Cap Historic Six Months

U.S. light vehicle sales ended the best first half in history with record June sales, marking 21 of the last 22 months in which deliveries outdid the same year-ago period.

There was no letup in large sport/utility vehicle (SUV) sales despite higher gas prices, but large pickups did decline for a second consecutive month - the first time that's happened since February 1998. Market share for cars increased to 52.1% in June compared to like-1999's 51.9%, the first time since January that car share was above the same year-ago month.

The seasonally adjusted annual rate (SAAR) was 17.0 million, the same as the prior month and slightly better than year-ago's 16.9 million. Sales during the first six months of 2000 hit all-time highs in volume (9.099 million) and in the annual pace (17.7 million). Furthermore, sales volumes over the second half of this year would have to fall by 7% from second-half 1999 for 2000 to fall short of last year's all-time record of 16.9 million. Analysts at sister publication Ward's Automotive Reports say that if sales track along typical month-to-month patterns for the remainder of 2000, the final year-end tally should range between 17.2 million and 17.4 million.

Sales for the first half were 7% ahead of last year's pace, with nearly every company running ahead of 1999 levels. The exception was DaimlerChrysler AG, which recorded a 2.0% decline, despite a small increase at its high-volume Dodge Div. and a 10.9% rise in sales of its Mercedes-Benz products.

June was inauspicious for the Big Three, as each posted a sales decline, and combined market share fell to 68.9% from like-1999's 73.1%. The Big Three's first-half 2000 share stood at 69.4% vs. year-ago's 72.4%. Sales for the Big Three combined increased 2.5% in the first six months, while sales for Honda-Nissan-Toyota rose by a sound 15.0%. The remainder of the industry, led by the South Korean makes, Mitsubishi Motor Sales of America Inc. and Volkswagen/Audi of America Inc., increased combined sales by a whopping 25.9% (see chart, p.24). Market share for those smaller-volume companies increased to 11.3% from 9.6% in first-half 1999.

Overall sales of SUVs increased by 6.7% in June from year-ago and year-to-date sales were up even higher at 12.9%. Sales of large-luxury SUVs in June were up a resounding 11.6% and the middle-luxury segment increased an impressive 8.6%.