US auto sales in 2017 likely fell for the first time since 2009 - Nomura

According to WardsAuto, December light vehicle sales came in at a pace of 17.8mn saar (-1.6% y-o-y), above expectations (Nomura: 17.0mn, Consensus: 17.5mn) and up from the 17.4mn saar pace in November, while the US auto sales in 2017 likely fell for the first time since 2009, notes the research team at Nomura.

Key Quotes

“The December reading continues the strong pace of sales over recent months, which was partly driven by replacement buying activity for hurricane-damaged vehicles. Although low unemployment and strong consumer confidence will likely remain favorable for demand in 2018, tighter lending standards on new and used auto loans may continue to weigh on sales. We still expect the pace of sales to slow towards the underlying trend, which we believe to be roughly 16.7mn saar.”