Declining US market ratchets up competition for SUV sales

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NEW YORK: Falling U.S. new vehicle sales through the rest of 2019 and into 2020 will bring more intense competition in the increasingly crowded ...

NEW YORK: Falling U.S. new vehicle sales through the rest of 2019 and into 2020 will bring more intense competition in the increasingly crowded market for SUVs and a continued decline in passenger car sales, executives and economists said at this week's auto show in New York.

After a long bull run, U.S. auto sales are expected to fall about 3 percent to 16.8 million units. That is still a respectable number, but the decline will increase competition for market share. While those bigger vehicles are far more profitable for automakers, increased competition could lead to higher incentives in that segment that could squeeze profit margins just like with sedans over the years, industry officials said.Executives also cited slowly climbing auto interest rates and the rising cost of new vehicles. Honda Senior Vice President Henio Arcangeli said uncertainty about the revised U.S. tax code also had an impact on sales.Bob Carter, head of U.S.

According to data from automotive consultancy LMC Automotive, by the year 2023 there will be 90 mainstream SUV and crossover models on the U.S. market, as well as 90 luxury models. Those numbers compare with 2017 levels of 65 mainstream SUV and crossover models and 53 luxury models.

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