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US Auto Sales Projected to Rise 15% in 2010
Nov 12, 2009

With the improving business environment and consumer confidence, the US auto industry is expected to come out from slump and touch the mark of 11.8 Million Units in 2010.
An influential industry tracking company CSM Worldwide has recently said that the auto sales in the US will surge around one-fifth to reach 11.8 Million Units in 2010 since the worst economic downturn has passed and signs of economic recovery have started appearing, as reported by REUTERS.
The firm further stated that the projected sales increase would be the first year-on-year rise in sales of light vehicles in the US since 2005.
CSM has raised its previous forecast by 600,000 Units on the ground that customer confidence will improve enough to push up the automobile industry in the first quarter of 2010, when economic indicators such as employment are likely to bottom out.
The unemployment level in the country is expected to peak in the first quarter of 2010, but the situation will slowly improve in the remaining quarters of the year. Moreover, consumer confidence will also be boosted with the recovery of household finance and easing automobile lending by the third quarter.
CSM has also claimed that the annualized vehicle-selling rate is expected to climb to 13.6 Million Units by the fourth quarter, indicating to the level of sales if the pace remains the same throughout the year.
Moreover, industry experts hold a common opinion that economy has stopped declining, and is gradually rebounding with the betterment of business environment. This fact also holds true for the automobile industry, which received a severe blow from the recession that almost dried up its sales.
Another leading market research firm ‘J.D. Power and Associates’ has affirmed the general consensus of industry experts and said that the economy is showing strong signs of upward movement. Economic downturn has begun fading, good news for the auto manufacturers who suffered hefty losses on weak sales amid crisis.
"I think the signals are strong but we are not fully out of it yet," J.D. Power analyst Jeff Schuster told Reuters. "Given what we have been through, we prefer to remain cautious," says analyst, as reported by MOTOR TREND on October 22, 2009.
According to a Research Analyst at RNCOS, “The current auto industry moves point to cautious optimism of improvement in market fundamentals after Q1 2010. These projections by the industry and market are clearly symbolizing that automobile manufacturers and suppliers should begin to work on plans for future production.”
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