Report: New car sales expected to hit lowest point since 2014
- Lowest auto sales in 5 years: While still solid, 2019 auto sales were at the lowest point since 2014
- Further slowdown expected: New car sales are expected to slow further in 2020, due to slower economic growth and less affordable vehicles
HOUSTON, Feb. 3, 2020 /PRNewswire/ — BBVA Research published its January auto sales chartbook, noting vehicle sales were 16.9 million in 2019, down 1.7% from 2018. While the sales results are still solid, 2019 sales were the lowest since 2014.
New car sales are expected to slow further in 2020, due to slow economic growth and less affordable vehicles, though stable interest rates should provide some relief to both dealers and consumers. Used vehicle sales will be bolstered by consumer access to credit, the high price of new vehicles and a robust supply of “off-leasing” vehicles.
Both plug-in and battery electric vehicle sales declined in 2019, down to 319,554 in 2019 from 349,688 in 2018. While electric pick-up models may start production in 2020, the battle for corporate average fuel economy (CAFE) targets, affordability and the phase out of the federal tax credit for some companies may limit prospects for electric vehicles in general.
BBVA (NYSE: BBVA) is a customer-centric global financial services group founded in 1857. The Group has a strong leadership position in the Spanish market, is the largest financial institution in Mexico, it has leading franchises in South America and the Sunbelt Region of the United States. It is also the leading shareholder in Turkey’s Garanti BBVA. Its purpose is to bring the age of opportunities to everyone, based on our customers’ real needs: provide the best solutions, helping them make the best financial decisions, through an easy and convenient experience. The institution rests in solid values: Customer comes first, we think big and we are one team. Its responsible banking model aspires to achieve a more inclusive and sustainable society.
In the U.S., BBVA is a Sunbelt-based financial institution that operates 641 branches, including 330 in Texas, 89 in Alabama, 63 in Arizona, 61 in California, 44 in Florida, 37 in Colorado and 17 in New Mexico. The bank ranks among the top 25 largest U.S. commercial banks based on deposit market share and ranks among the largest banks in Alabama (2nd), Texas (4th) and Arizona (6th). In the U.S., BBVA has been recognized as one of the leading small business lenders by the Small Business Administration (SBA) and ranked 8th nationally in terms of dollar volume of SBA loans originated in fiscal year 2018.