Auto sales incentives seen steady in March vs Feb
DETROIT (Reuters) - Sales incentives offered on new vehicles in the U.S. market were up 4 percent in March from a year earlier as automakers struggled with sagging demand, according to a report on Monday.
Automakers spent an average $2,519 in incentives to sell a vehicle this month, up $94 from a year earlier, auto industry tracking service Edmunds.com estimated in the report.
Detroit's embattled automakers again topped incentive spending in March, led by Chrysler LLC, Edmunds said.
On an industry wide basis, spending on auto incentives, including rebates and concessional financing, was up just $5, or 0.2 percent, in March from February, Edmunds said.
Analysts say U.S. automakers have moved more aggressively to cut production in the face of falling demand instead of attempting to clear inventory with incentives.
Sales incentives, which are not always disclosed by the automakers, are widely tracked by analysts as an indication of the relative profitability of competing automakers and the pressure they face to move unsold stock.
Chrysler LLC led the industry with average incentive spending of $4,142 in March, up sharply from $3,520 in February, according to Edmunds.
General Motors Corp GM.N spent an average $3,271 in incentives per vehicle in March, and Ford Motor Co (F.N) came in third with $3,017, Edmunds estimated.
Among other major automakers, Toyota Motor Corp (7203.T)(TM.N), now the No. 2 player in the U.S. market, spent the least with average incentive spending of $898. Honda Motor Co Ltd (7267.T) offered $1,297 per vehicle while Nissan Motor (7201.T) spent $2,031 per vehicle, Edmunds said.
Continuing a trend of recent months, full-size pickup trucks carried the highest average incentives at $4,368. Sales of pickup trucks have come under pressure as construction of new homes has slowed and contractors hold back on purchases of work vehicles.
U.S. auto sales figures for March are scheduled to be released Tuesday. Analysts expect car and light vehicle sales in the world's top auto market to drop more than 6 percent in March from a year earlier, as the housing slump and tighter credit crimped demand.
(Reporting by Soyoung Kim; editing by Jeffrey Benkoe)
