Sept. 7, 2018—With automakers’ overall sales struggling in August, it provided further proof that the vehicle market likely peaked two years ago, according to bloomberg.com.
The article noted that sedan sales now represent less than 30 percent of the auto market for the first time in history, and companies like Toyota are feeling a significant negative impact as a result. For example, Toyota’s Camry model posted a 19 percent sales drop last month. Similarly, Honda’s Accord saw an 11 percent decline.
Of course, those Japanese OEMs largely manufacture sedans, and they’re no longer willing to expand incentives in an attempt to reverse their downward trend.
Even the recent boom in SUV sales hints at possible trouble, bloomberg.com wrote. After all, rising demand has partially been driven by consumer incentives and discounts, a sign that automakers are rather desperate, the report indicated. And the risk is that incentives will, before long, eat away at profitability.
To read the full bloomberg.com piece, click here.
