Auto Sales Increase by 9 Percent in September

The auto sales in United States have increased in September comparatively to the previous months as the impact of the earthquake in Japan lifted and there was ample availability of inventory. However the pace of recovery for the automobile sector in the coming months is seen to speed up.

Japanese automakers Toyota Motor Corp. (NYSE:TM) and Honda Motor Co. Ltd (NYCE:HMC) will be finally competing in with their inventories and are projected to announce gains in their September market share, especially Honda, according to numerous analysts.

Automobile industries were severely affected due to the 11^th March earthquake in Japan. It further delayed the recovery of sales from the recession hit in 2008-2009 leading to minimum per capita sales that have not been seen since the end of World War II.

Edmunds and J.D Power & Associates individually forecasted a hike of 12.9 million vehicle sales for September, resulting in a 7 percent increase from last month and 9 percent increase since September 2010. This is close to 13.1 million annual vehicles sales in the first four months of the year. The auto sales are set to be reported on October 3, which serve as an early indication to U.S. consumer demand rise each month

Noticing the increase in auto sales, Mike Jackson, chief executive of AutoNation Inc., the largest auto dealer group in the U.S said that he is convinced that auto sales are projected to rise in the final quarter of the year, in spite of a frail economy.

According to TrueCar.com, Honda has suffered severely since April and the auto sales will see boost in September for the automaker. Honda sales will experience an increase of 15 percent from august. Edmunds and TrueCars both predict General Motors Co will see a growth of 20 percent in the new vehicle U.S market share, followed by Ford at 17 percent, Chrysler and Toyota achieving close to 12 percent, followed by Nissan and Honda each making around 9 percent of the sales.

The sales incentives were also up in September and are projected to continue rising  slowly along with deliveries to auto dealers, according to Caldwell on Thursday.

September sales incentives are set to get a hike of about 2.6 percent compared to the previous months, Honda topping the list with a 15 percent hike. Pickup truck sales are also expected to increase in the U.S and will occupy a larger share in the market as winter approaches, showing a rise in retail purchases since last December.

Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.