Registrations for new cars and trucks in Hawaii rose 28 percent in the third quarter of 2012, compared with the same period last year, according to the Hawaii Auto Outlook.
Year-to-date vehicle registrations went up 22.3 percent, soaring above the national year-to-date increase of 13 percent, according to the report by Pennsylvania-based Auto Outlook Inc. for the Hawaii Automobile Dealers Association.
Toyota and Scion brands were the top sellers in Hawaii, as is usually the case. Toyota/Scion commands a market share of 26.5 percent, while Honda is second at 13 percent. Nissan is third with 9.8 percent, while the top domestic brand is Ford at 7.5 percent statewide.
Sales increases of Japanese makes are on the upswing in part due to recovery of Japanese car-makers ravaged by the 2011 earthquake and tsunami, said Rick Ching, president of Servco Automotive. Servco is Hawaii’s distributor of Toyota and Subaru vehicles.
This year, supplies are "much more robust" compared with the same period last year, Ching said.
Hawaii’s overall sales increase was fueled in part by a 78 percent increase in sales of so-called alternative vehicles, which now make up 6.1 percent of the market.
About 307 electric vehicles were sold in Hawaii in 2011, but only 197 have been sold so far this year. Sales of 1,342 hybrids in 2011 already have been eclipsed by the 1,882 sold so far this year, the report said.
"The market seems to be questioning electrics," said Ching, of Servco, though given relatively short driving distances and warm weather favorable to battery life, "Hawaii is a very good market for electric vehicles."
Toyota’s four Prius models have "done very well in the hybrid arena," as well as a Camry hybrid and a hybrid Highlander, Ching said.
"Hybrids overall are over 15 percent of Toyota brand sales," Ching said.
Domestic brands also are enjoying stronger sales, for the most part. Jeep was among the largest in year-over-year sales increases, noted Jarret Cutter, chief operating officer of MJC Inc., which operates four dealerships.
"Chrysler stepped up advertising across all brands (including Jeep) … and they’re really supporting us on inventory. We’re getting everything we asked for," and getting it quickly, Cutter said.
The manufacturer also has been offering incentives and "interest rates are probably the lowest I’ve ever seen," Cutter said.
The GMC brand saw a nearly 15 percent year-over-year dip in sales, while the Dodge Ram line of trucks, some of them gas-suckers, grew more than 44 percent during the period. "It’s a tribute to the advertising commitment Chrysler has put into the state of Hawaii," he said, noting also that Chrysler came out with refreshed models last year.
GMC will release its refreshed models this year, and Cutter predicts a corollary increase in GMC sales.
Hawaii Auto Outlook projects that 2012 will see an increase of 19.9 percent over last year and predicts another, though smaller gain of 9 percent for 2013.
Many factors may weigh the recovery down, the report said, including sluggish economic growth, a slowly recovering labor market, restrictive fiscal policy from Washington, D.C., the European debt crisis and a slowing global economy.
Factors that will keep auto sales growing include pent-up demand, an improving housing market, low interest rates and gradually decreasing household debt, the report said.
Hawaii has endured three years of relatively poor sales "so there’s a feeling of pent-up demand for people who have held on to their vehicles," perhaps due to a lack of confidence in the economy or other factors, Servco’s Ching said. However, "those things are getting better now, and it’s good to see consumers feeling more confident," to the point that they are making big-ticket auto purchases.
