When final numbers are released, U.S. auto sales in October are expected to fall nearly 4% compared to October 2016 sales of 1.37 million vehicles, according to estimates from J.D. Power and LMC Automotive. Despite the decline, LMC maintained its full-year forecast for sales of 17.1 million vehicles in 2017.
Manufacturers are trying to mitigate the decline in sales by increasing discounts, which hit a monthly record average of $3,901 in October, slightly higher than the previous record of $3,835 set in October 2016.
CPO Sales Also Down In October
Certified pre-owned (CPO) vehicle sales were down 3.3% in October, but the year-to-date pace is still on par with the record figures from a year ago. According to Autodata Corp., there were 200,240 CPO sales in October 2017, compared to 207,105 CPO sales in October 2016. Despite the year-to-year drop, the year-to-date sales of 2.22 million certified vehicles through October 2017 are up 0.6% from the same period of 2016.
Study Predicts Slow Rise In Electric Vehicle Sales
A recent study by Boston Consulting Group (BCG) found that pure electric vehicles will likely account for 6% of total global vehicle production by 2025 and 14% by 2030. They currently account for less than 1% of the nearly 100 million vehicles sold worldwide. The study finds that greater consumer demand will be driven by a combination of factors, including improved battery technology, lower costs, and government mandates.
In the recently announced tax reform proposal unveiled by Republicans in Washington, there is discussion about eliminating the $7,500 tax credit for purchasing a pure electric vehicle, a major driver of sales at this time.
The study also found that a gradual shift to ride-sharing in metropolitan areas, as well as the further development of self-driving vehicles will also drive future demand for electric vehicles.