Macro Flash Report

Automotive Industry

Takeaway:

The auto sector’s decline in sales and production, coupled with rising inventories, signals weaker consumer demand. If affordability issues persist, steel demand from this sector may remain subdued in the near term, though the upcoming rate cuts this month could offer a positive boost down the line.

Wards Total Vehicle Sales

Ward Total Vehicle Sales dropped to 15.13m, down from 15.80m in July and well below the market expected 15.40m. This marks the lowest sales level since January, essentially undoing the rebound seen in July.

Auto Production & Inventories

In July, Auto Production continued to decline, falling to 117 from 128.7. Meanwhile, Auto Inventories edged higher, increasing to 233.55 from 228.73 in June, ending a three- month steak of falling inventories. These figures in tandem signal weaker demand, which have mainly been attributed to the impact of inflation and high interest rates.