US vehicle sales have fallen slightly as demand for new cars and trucks sputtered.
Sales dropped 0.5 per cent to 1.4 million in September, which was the fourth month of year-over-year sales declines this year, according to Autodata Corp.
Car makers reported mixed results on Monday: Nissan's sales rose 4.9 per cent over last September; Hyundai and Subaru reported four per cent sales gains; Toyota's sales rose 1.5 per cent; General Motors' and Honda's sales were flat for the month; Fiat Chrysler's sales fell one per cent; Ford and Volkswagen each reported eight per cent declines.
Slowing sales are not necessarily bad news for car makers or consumers. Sales remain near historic highs, and some analysts suggest 2016 sales could still top the record of 17.5 million set last year.
Favourable conditions such as low interest rates and low petrol prices remain in place, and consumer confidence hit a nine-year high in September, according to the Conference Board's index.
But after six straight years of growth, demand is clearly slowing. US sales are up just 0.5 per cent through September.
Cars have been particularly hard hit as low petrol prices have made SUVs and trucks even more appealing. Brands without competitive new SUVs are struggling. Sales for Fiat, for example, plummeted 30 per cent in September.
New cars also are feeling pressure from used cars because of the growing popularity of leasing. More than 30 per cent of new vehicles are now leased, up from 20 per cent five years ago.
About 500,000 off-lease vehicles are returning to the used car market this year and next year, and many consumers will choose them instead of new vehicles, says Alec Gutierrez, a senior market analyst with Kelley Blue Book.
Ford US sales chief Mark LaNeve said incentive spending was $US430 a vehicle higher than last September. Usually, he said, incentives were only about $US100 higher or lower than the year before.
"The business is as competitive as I've seen in my 32 years," LaNeve said during a conference call with analysts and media. "Everybody's trying to protect their share and, in spots, grow it."
