August US Auto Demand: 16.7m Unit SAAR Not Surprising...but Shouldn't Buyers Be Front Loading Now?

Global Auto Demand Tracker: U.S. SAAR Looks Set to Fall in 2H18

Analyst - Japan Autos, Hirakata Office

Noriaki Hirakata, CFA

Analyst - Japan Autos

Hirakata Office

Thematic (Sector/Industry)

United states Automobiles and components / Thematic (Sector/Industry)

<p><strong>US SAAR for August 2018 came in at 16.72 million, which is flat to the 16.77 million for July 2018 and the 16.58 million for August 2017</strong></p><div class="content-highlight"><p>SAAR has been creeping down during 2018 while a significant segment migration from passenger cars to trucks was ongoing.<br><br>This migration puts the Detroit 3 brands with their significantly higher light truck market share compared to Asian brands at a distinct advantage. Asian brands having a high percentage of sales in passenger car segment are over-proportionally hit and for them, after adjusting for the shrinking passenger car segment SAAR would be only around 13-14 million units.</p></div>

US SAAR for August 2018 came in at 16.72 million, which is flat to the 16.77 million for July 2018 and the 16.58 million for August 2017SAAR has been creeping down during 2018 while a significant segment migration from passenger cars to trucks was ongoing.  This migration puts the Detroit 3 brands with their significantly higher light truck market share compared to Asian brands at a distinct advantage. Asian brands having a high percentage of sales in passenger car segment are over-proportionally hit and for them, after adjusting for the shrinking passenger car segment SAAR would be only around 13-14 million units.

August 2018 US Automotive Sales: Segment Migration Wave Accelerating