Total light-vehicle sales are expected to finish out 2017 at 17.2 million units, a decrease of 1.9% from 2016, according to joint research by J.D. Power and LMC Automotive, with retail light-vehicle expected to finish the year just below 14 million units – down 1.1% from 2016.
Having personally invested 5 months into working in car dealerships during 2017, on the front lines managing digital marketing campaigns and supervising BDC operations… I can attest to the simple reality that trucks and SUV’s were where we were able to generate excitement and consumer response in 2017. At Tier 3, we feel the mood of the car buying population far sooner than reflected in sales numbers.
The continuing shift of sales percentages into more trucks and SUV’s and less conventional passenger cars is reflected in the responsiveness that automotive consumers have to sales promotions and campaigns on each model type.
Looking forward to 2018, both firms expect total light-vehicle sales forecast to top out under 17 million units, a decline of 1.2% from 2017, while the forecast for retail light-vehicles is 13.8 million units for 2018, a decline of 1.4% from this year.
“SUV demand has been robust and is expected to finish up 5% in 2017 from 2016 and a market share of 43% of total light-vehicle sales,” he said in a statement. “The SUV reign will continue for the foreseeable future [as] SUVs are expected to account for 50% of new model activity in 2018, which will help push the share of total sales to 45% and continue the segment’s volume growth, even as the total market is projected to contract further in 2018.”
He added that light truck models overall accounted for 68% of new-vehicle retail sales through Dec. 17 – the highest level ever for the month of December, making it the 18th consecutive month above 60%.