Limited Dealer Inventory Contributes to Sluggish July

Japanese brands, still struggling to meet production demands in the wake of the March earthquake and tsunami, fared worst than their domestic counterparts in July. Overall, international brand sales were down 6.1 percent from July 2010, but up 7.5 percent year to date. Honda sales were down 28.5 percent from the same month last year, Toyota sales were down 22 percent, and Subaru was down 9.4 percent. Some of the biggest gains last month were seen by Hyundai (up 10.1 percent) and Kia (up 28.5 percent). Domestic automakers also saw gains, up 9.9 percent for the month and 15.1 percent year over year.

“Unemployment, production shortages, and uncertainty over our economic stability have all contributed to a sluggish summer for sales,” said AIADA President Cody Lusk. “In the fall, we expect stabilizing gas prices, rising consumer confidence, and a return to normal inventory levels to drive an increase in transactions.”

Internationals Regain Some Market Share

International brands captured 52.4 percent of the market, up from 49.9 percent in June and 50.4 percent in May. Although Japanese automakers impacted by March’s natural disaster are ahead of schedule in their work to resume operations, they still continue to experience shortages that are creating sluggish sales of several of their top-selling models. Asian brands held 42.8 percent of the market, up from 39.9 percent in July. Overall, they sold 453,902 vehicles and were down 10.3 percent from July 2010. European nameplates held 9.6 percent of the market, selling 101,481 vehicles, which was an 18.7 percent increase over July 2010. Domestic brands sold 504,218 units, were up 9.9 percent, and carried 47.6 percent of the U.S. auto market.

Top-Selling Vehicles

Internationals held three of the top ten selling vehicle spots during July, up from two in June. The Toyota Camry resumed its position as the top selling car in America, selling 27,016 models. Sales, however, were down 22.9 percent from July 2010. The Hyundai Sonata rejoined the top ten, with sales up 17.1 percent, as did the Nissan Altima, which logged a sales increase of 16.8 percent over last July. The Ford F-Series and the Chevrolet Silverado continued to be the top selling models. Five of the top ten models demonstrated year-over-year sales improvements by an average of 22.4 percent.

Vehicle Segments

All segments, except the SUV/crossover category, experienced decreased year-over-year sales. The SUV segment sold 342,855 units during the month, up 9.9 percent over July 2010. The midsize car segment trailed with sales of 244,715 vehicles. Asian nameplates sold 269,083 cars and 184,819 trucks, while European nameplates sold 73,234 cars and 28,247 trucks. Domestic brands sold 165,484 cars and 338,734 trucks.

Outlook

Overall sales, including domestic brands and unadjusted for business days, were up 0.9 percent from July 2010 and 10.9 percent year to date. Sales were up 0.6 percent from June 2011. The seasonally adjusted annual rate (SAAR) for light vehicle sales in July was estimated by AutoData Corp. at 12.23 million units, up from11.55 million units in June 2010.

See below for a complete breakdown of July 2011 monthly and year-to-date sales by international nameplate.