New-Car Sales to Reach 17.3 Million SAAR in May 2015, According to Kelley Blue Book

IRVINE, Calif., May 27, 2015 /PRNewswire/ -- New-vehicle sales are expected to decline 1 percent year-over-year to a total of 1.59 million units in May 2015, resulting in an estimated 17.3 million seasonally adjusted annual rate (SAAR), according to Kelley Blue Book www.kbb.com, the only vehicle valuation and information source trusted and relied upon by both consumers and the automotive industry. 

"May sales will reach the highest total year-to-date, and could remain the highest until December of this year," said Alec Gutierrez, senior analyst for Kelley Blue Book. "While we expect an overall decline in volume versus last year, the difference is the result of one fewer sales day from May 2014, and total SAAR will reflect year-over-year improvement. May typically is a strong sales month, as consumers take advantage of warmer weather and advertised deals for the extended Memorial Day sales weekend." 

Total sales are projected to hit 16.9 million units in 2015, a 2.5 percent year-over-year increase and the highest overall total since 2005, when sales fell just shy of 17 million units overall.

Key Highlights for Estimated May 2015 Sales Forecast:

• In May 2015, new light-vehicle sales, including fleet, are expected to reach 1,590,000 units, down 1 percent from May 2014 and up 9.5 percent from April 2015.
• The seasonally adjusted annual rate (SAAR) for May 2015 is estimated to be 17.3 million, up from 16.7 million in May 2014 and up from 16.5 million in April 2015.
• Retail sales are expected to account for 82.2 percent of volume in May 2015, up from 81.7 percent in May 2014.

Jeep Continues to Push Fiat Chrysler Automobiles Market Share

"Fiat Chrysler Automobiles is expected to narrowly continue its sales gain streak to 62 straight months of growth, largely due to the surging Jeep brand, which is poised to set another record in monthly sales," said Gutierrez. "The all-new Renegade would have helped push Fiat Chrysler's total even higher, if not for the halt on its deliveries due to a software issue. Nonetheless, the Cherokee experienced similar troubles at its launch in late 2013 and is now Jeep's top seller."     

Most major manufacturers are anticipated to post slight declines in volume or perhaps break even.  However, American Honda could report a slightly larger drop in volume, as two of their best-selling models, the Accord and Civic, are in segments that are losing popularity among consumers. 

Small and Mid-Size Utility Vehicles Lead Industry; Small and Mid-Size Cars to Drop up to 5 Percent in May

Even as gas prices have been on the rise since January, small and mid-size utility vehicles continue to lead the industry. The two segments have grown to comprise nearly 25 percent of new-car sales and are expected to climb once again in May, roughly 6 percent. Conversely, small and mid-size car sales are flat and combined share is down 1.5 percent. Declines in these segments will range between 4 and 5 percent this month. 

There are 26 sales days in May 2015, compared to 27 sales days in May 2014. All percentages are based on raw volume, not daily selling rate.

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About Kelley Blue Book (www.kbb.com)
Founded in 1926, Kelley Blue Book, The Trusted Resource®, is the only vehicle valuation and information source trusted and relied upon by both consumers and the automotive industry. Each week the company provides the most market-reflective values in the industry on its top-rated website KBB.com, including its famous Blue Book® Trade-In Values and Fair Purchase Price, which reports what others are paying for new and used cars this week. The company also provides vehicle pricing and values through various products and services available to car dealers, auto manufacturers, finance and insurance companies, and governmental agencies. Kelley Blue Book's KBB.com ranked highest in its category for brand equity by the 2014 Harris Poll EquiTrend^® study and has been named Online Auto Shopping Brand of the Year for three consecutive years. Kelley Blue Book Co., Inc. is a Cox Automotive company.

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SOURCE Kelley Blue Book