US: Vehicle sales to post a strong number for October – Nomura

Analysts at Nomura think that US total light vehicle sales will come in at a strong pace of 17.5mn saar.

Key Quotes

“On a strong jump in demand for replacement vehicles after hurricanes swept through the Texas and Florida, the sales in September reached a pace of 18.5mn, the highest since July 2005. While fleet sales appear to have been strong, sales at auto dealers increased solidly as well. Although we think that this sharp increase is likely transitory, we expect to see residual demand for replacement vehicles in October. Further, incentive spending appears to have been aggressive in the month as automakers strive to clear out inventories of older models.”