U.S. Car Sales on Track for 8% Gain in February

Wholesales of new cars and light trucks are likely to rise 8% to nearly 1.4 million units in February, according to the J.D. Power-LMC Automotive monthly forecast.

The annualized sales rate for the month is expected to reach 17.7 million units. That compares with 17.6 million in January and 16.4 in February 2014.

Power-LMC estimates that retail sales, considered a better measure of the health of the auto market, will climb 8% to top 1 million vehicles this month. The forecast estimates an annualized retail sales rate for February of 13.9 million units, up from 12.8 million a year ago but down from last month’s 14.1 million pace.

The analysis reports a second consecutive month of market-leading volume by the compact car segment. Demand is being driven by hefty sales incentives and a bevy of new products. But Power-LMC says cars are likely to capture only a record low 42% of the U.S. passenger vehicle market this month, as consumers continue to flock to crossover/SUVs and pickup trucks.