Honda’s November sales were down by 9.5 percent thanks to declining demand for passenger cars.
It’s no secret that demand for passenger cars is falling as crossovers and SUVs continue to rise in popularity. Ford boldly responded to this shifting market trend by axing all of its US passenger cars apart from the Mustang, but the gamble doesn't seem to be paying off yet. According to Automotive News, Ford’s US sales fell 6.9 percent in November thanks to falling car demand and lower truck deliveries. Truck demand has slipped 2.3 percent while SUV and utility sales dropped 4.9 percent and car deliveries are down 18 percent for the year.
Honda’s US sales are also suffering significantly as a result of the declining demand for passenger cars like the Civic. November US sales are down by 9.5 percent, and despite an 11 percent increase in Acura sales, overall American Honda sales are now down 2.8 percent for the year.
In November, Civic sales dropped by a whopping 30 percent despite recently getting a refresh for the 2019 model year, while its bigger passenger-car sibling, the Accord, managed a 1.6 percent increase for the month but is down 13 percent for the year. Overall, American Honda's car sales dropped 13 percent and light truck deliveries fell seven percent last month.
Looking at the bigger picture, overall US car sales in November are expected to be down by around two percent, representing the first year-over-year November decline since 2009 despite end-of-year sales promotions and Black Friday deals.
The unrelenting demand for crossovers isn’t solely to blame, however, as analysts also believe rising interest rates and trade fears are affecting auto sales. “November’s sales slowdown signifies a new normal that we can expect through at least the end of 2018, and likely into 2019,” said Jeremy Acevedo, manager of industry analysis at Edmunds. “Although sales remain at a healthy level, factors such as increasing market saturation, rising transaction prices and elevated interest rates continue to create headwinds for the industry overall.”