World Vehicle Sales Up 5.5% in March

Global sales totaled 9.38 million vehicles in March, rising 5.5% over year-ago with gains coming from all four regions.

The most surprising and improved result came from South America, where sales soared 14.1% to 339,000 units. Though the region continued to suffer from political unrest and economic crises, this third month of gains after two years of losses may mark a turning point for the auto industry.

Argentina saw the biggest percentage growth, topping year-ago by 36.5% with 76,000 vehicles. Brazil was up 5.6% to 189,000 and Chile increased 28.3% to 31,000.

For the first three months of the year, South America sales totaled 899,000 units, outpacing like-2016 by 9.0%.

Sales were strong across most of Europe, jumping 9.7% to 2.44 million for the month. Highlights included a 49.4% increase in Greece, a 47.4% improvement in Ukraine and a 21.7% boost in Poland.

Russia sales grew 8.4% in March to 145,000 units, pushing the year-to-date total just ahead of year ago for the first time in years.

Through the first quarter, auto dealers in Europe outsold same-period 2016 by 7.0% with 5.38 million deliveries.

Sales in the Asia-Pacific region continued to grow, climbing 5.5% over March 2016 with 4.27 million units. The biggest percentage increase was 18.2% from the Philippines, with a tally of 37,000 units. Malaysia (+10.1%), Pakistan (+16.5%) and Thailand (+16.7%) also saw double-digit growth.

These developing countries have a growing middle class that is replacing motorbikes with new cars for the first time. Still, Vietnam, for example, has around 45 million motorbikes and only about 425,000 cars and trucks.  

Australia sales were slow in March with 105,000 units, and fell 5.4% to 279,000 through the first quarter. New Zealand sales are booming, up 15.0% in Q1, but on smaller volume.

China sales were up 4.2% to 2.54 million, more than all the vehicles sold in Europe. In an opposing trend to U.S. consumer preference, MPV and CUV sales were slow while demand for cars and larger SUVs continued to grow. Also, alternative-power vehicles were up 35.6% year-over-year, perhaps due to fears that government subsidies may be discontinued. Small, cheap, short-range battery electric vehicles were most popular.

Year-to-date, sales in the Asia-Pacific region were 6.9% ahead of like-2016 with 11.37 million units, a 47.5% share of the global market.

Strong demand in Mexico balanced flat sales in the U.S., bringing the North America tally up 0.1% to 1.91 million units in March. Deliveries in Canada improved 6.9% to 191,000 units, due to increasing light-truck sales.

Mexico sales continued to break records, soaring 17.1% to 141,000 units and up 8.9% for Q1. Sales were robust across segments, with Nissan and General Motors claiming the top two spots for volume.

Results in the U.S. came in below expectations, down 1.9% to 1.58 million, with even CUV sales slipping below year-ago. The 3-month total was 1.8% lower than like-2016. It seems pent-up demand from the 2008-2009 recession may be satisfied after seven years of growth.

At the end of the first quarter, North America sales dipped 0.5% below like-2016 on 4.92 million units taken, a 20.6% share of the world market.

Globally, automakers sold 23.92 million vehicles in Q1 2017, improving 5.3% on year-ago’s 22.72 million total.

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