US auto sales to rise in February despite weather woes, says report

US auto sales are forecast to rise in February, despite weather-related hurdles, as lean inventories provide a boost, industry consultants J.D. Power and LMC Automotive said on Thursday.
 

Retail sales of new vehicles are estimated to reach about 975,600 units in February, a 3.3% increase from a year ago, when adjusted for selling days, the consultancies said.
 

This year, February has two fewer selling days and one less selling weekend than a year ago, which was a leap year. Without the adjustment, sales would decrease 4.6%.
 

"Despite challenges posed by inclement weather in most of the country, retail sales demand continues to be strong," said Thomas King, president of the data and analytics division at J.D. Power.
 

King added that February results showed lean inventories with vehicles selling quickly at dealerships at lower discounts.
 

Average transaction prices are expected rise 9.8% to $37,524, an all-time high for the month of February. Average incentive spending per unit in February is expected to reach $3,562, down from $4,176 a year ago.
 

Disciplined incentives, dealer discounts and lower interest rates amid a shift towards more expensive trucks and SUVs continue to drive higher prices, the consultancies said.
 

Despite the global semiconductor shortage and the pandemic-led risk, LMC Automotive raised its 2021 outlook for global light-vehicle sales to 87 million units from 86 million units a month ago.
 

The pace of the 2021 recovery depends on the effectiveness of vaccine rollouts coupled with the industry's ability to move past the chip shortage and lower inventory levels, the report said.