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Automotive Consumer
AUTOS: March Sales Show Strong Gains
Automakers' incentives credited by analysts for increase.
Bob Golfen  |  Posted March 19, 2010   Santa Monica, CA.
Toyota Matrix and near-twin Pontiac Vibes are part of the recall of 1.3 million Toyota vehicles. (Photo: Toyota)
Boosted by automakers’ incentives, March auto sales are on pace for an annualized rate of 13.2 million, compared with a rate of 10.36 million vehicles for February, according to an early look at the results by Edmunds.com analysts.

“The industry has been recharged by incentives offers from Toyota and other automakers,” said Jessica Caldwell, Edmunds.com senior analyst. “There is a lot of money in the marketplace right now, and people are responding.”

Toyota has been thriving despite its recall and public-perception woes, largely because of the incentive lures offered to buyers. Other automakers, notably General Motors, have also boosted their sales with costly incentives.

“Toyota’s incentives announcement immediately generated nearly a 40 percent spike in that brand’s purchase intent by visitors to Edmunds.com,” said Edmunds.com Senior Analyst Ray Zhou. “But Toyota’s market share has dropped from its high point earlier this month because other automakers’ incentives programs have been effective as well.”

“Purchased intent” is gauged by studying potential new-car buyers’ activity on the Edmunds.com website.

Although the strong showing so far this month are encouraging, Edmunds researchers said they should not be misconstrued as a general strengthening of the economy. They expect March sales to slacken during the remainder of the month.

“We shouldn’t view this as a sign that the economy recovering; this sales bounce is driven by incentives,” said Edmunds.com CEO Jeremy Anwyl. “Take away the incentives and the sales will slow dramatically.”

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