Most Automakers Report U.S. Sales Decline During July

While most of automakers reported sales drop in the United States in July, thus triggering a selloff in the auto counter, there are also few positives to look upon. On a unit-wise basis, the sales were below than the expected levels. However, TrueCar Inc TRUE sees that automakers have recorded 0.9 percent growth in revenue to reach $48.9 billion in July.

Clearly, that suggested one thing strongly. The automakers were able to realize better transaction price. TrueCar expects $428 million revenue gain due to increased average price transaction on a year-over-year basis.

TrueCar estimated the average transaction price (ATP) to have increased 1.3 percent to $32,518 for a new light vehicle in July. However, average incentive spending per unit also advanced by $159 to $3,225 in July. The research firm pointed out that the ratio of incentive spending to ATP rose to 9.9 percent from 9.6 percent a year ago.

Related Link: The Silver Lining In Ford: Stock Slammed Since Earnings, But Dividend Yield Now Over 5%

One of the crucial points is that General Motors Company GM's inventory levels have come down, easing the pressure of reducing incentive spending in the upcoming months.

While Ford Motor Company F suffered at the retail levels, GM gained in the segment. Overall, trucks, vans, Jeeps and SUVs generally performed well for most automakers. The main automakers July sales include:

• Toyota Motor reported 1.4 percent drop in sales
• General Motors sales suffered 1.9 percent fall
• Ford Motor sales were down 3 percent
• Fiat Chrysler Automobiles NV FCAU sales up 0.3 percent
• Nissan Motor Co Ltd (ADR) NSANY reported 1.2 percent increase
• Honda Motor Co Ltd (ADR) HMC gained 4.4 percent sales
• Volkswagen AG (ADR) VLKAY VLKPY suffered sales drop of 8.2 percent
• MITSUBISHI MOTOR C NPV MMTOF reported 0.3 percent increase
• Hyundai Motor America revealed 5.6 percent increase in sales

While a few like Honda Motor surprised the Street analysts' estimations, others like Ford and GM disappointed the Street.

As a result, investors have dumped the auto sector on Tuesday with GM, Ford, Toyota Motor, FCAU trading in the red with significant losses.

However, Ferrari N.V. RACE bucked the trend to gain 2.5 percent on better-than-expected earnings report.

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