New-vehicle sales are expected to rise 6.7 percent year-over-year to a total of 1.54 million units, and an estimated 16.05 million seasonally adjusted annual rate (SAAR), according to Kelley Blue Book.
In its release, the company said that this marks the strongest May since 2007.
With 1.54 million units sold in May, this would bring the year-to-date total to 6.6 million, a 3.9 percent increase from last year. In addition, a 16.05 million SAAR this month could mark the second month above 16 million this year, following a 15.98 million SAAR in April.
"May represents one of the strongest sales months of the year, as consumers take advantage of warm weather and the extended Memorial Day Sales weekend," said Alec Gutierrez, senior analyst for Kelley Blue Book. "Although transaction prices remain at record highs, shoppers have been able to offset rising prices with low-interest financing and affordable lease options for even those with less- than-perfect credit."
Key Highlights for Estimated May 2014 Sales Forecast:
-In May, new light-vehicle sales, including fleet, are expected to hit 1,540,000 units, up 6.7 percent from May 2013 and up 11 percent from April 2014.
-The seasonally adjusted annual rate (SAAR) for May 2014 is estimated to be 16.05 million, up from 15.4 million in May 2013 and up from 15.98 million in April 2014.
-Retail sales are expected to account for 83 percent of volume in May 2014.
Compact Crossover Segment Steers Nissan Growth; Entire Jeep Lineup Reporting Double-Digit Growth Nissan is anticipating another prosperous month with a 13.6 percent year-over-year gain. Both Nissan's Rogue and Juke are benefitting from increasing popularity in small crossover vehicles, with their combined sales up 47 percent this year. In terms of volume, Chrysler will pick up the most units compared to last year with 12.8 percent growth. Chrysler is having a great year in 2014, gaining a full point of market share versus last year. The Jeep brand in particular has experienced double-digit growth across its full lineup.
Report: Kelley Blue Book: New-Car Sales to Jump Nearly 7%
Compact Utility Vehicles to Break 2 Million Sales for First TimeCompact utility vehicles are the fastest growing segment in May 2014 and are on pace to break 2 million sales for the first time. Mid-size SUV and crossovers also have posted double-digit growth, thanks in large part to the recently introduced Jeep Cherokee, which has sold more than 50,000 units this year through April.
"As a result of the strength in utility vehicles, we expect mid- size cars to lose the most market share of all segments," said Gutierrez. "In 2014, mid-size car segment sales are down 5.6 percent, with the biggest declines coming from Chrysler Group, which is down 30.8 percent. The Avenger has been discontinued this year, while the redesigned 200 has just hit dealership lots. The Nissan Altima and MAZDA6 are the only models with year-over-year gains in the segment."
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