Hawaii automobile sales running out of gas

Hawaii consumers are putting the brakes on buying new automobiles.

New-vehicle registrations declined 4.4 percent in 2018, and sales are projected to soften even further this year, according to a quarterly report scheduled for release today by Hawaii Auto Outlook. The down year in 2018 marked the state’s first decline after seven consecutive years of gains.

“There are a few signs pointing to a market slowdown,” according to Jeff Foltz, editor of Hawaii Auto Outlook. “GDP (gross domestic product) growth appears to be easing while there are increasing concerns about financial market stability and the prospects for global growth. But the strong labor market, combined with a steady stream of impressive new products, should prevent a sharp decline over the next 18 months.”

The 56,520 registrations — while still near recent highs — was the lowest total since 2014 when there were 54,039 vehicles registered statewide. There were 59,137 registrations in 2017. Hawaii Auto Outlook, which produces the report for the Hawaii Automobile Dealers Association, forecasts this year there will be 54,750 registrations. That would mark a second straight down year but the sixth straight year of 50,000 or more registrations.

In the fourth quarter alone, statewide registrations fell to 13,310 from 13,438.

Hawaii’s slowing vehicle market is following the national trend, which saw new registrations drop 0.9 percent in 2018.

While new-vehicle registrations can be representative of auto sales, the two don’t always align because a buyer can purchase a vehicle one month and register it in another month. The data are based on county Department of Motor Vehicles registrations.

As has been the recent trend, light trucks, which include vans, SUVs and pickups, continued to be the vehicle of choice in Hawaii with a 0.8 percent year-over-year increase and a 67.9 percent market share. That is up from a market share of 48.7 percent in 2012. Light trucks have exploded in popularity during recent years due to stable gas prices, which have spurred potential buyers to seek out vehicles with additional cabin room for passengers and storage, as well as a higher seat position that allows the driver to see the road better.

Cars continued to wane in popularity, with registrations plummeting 13.9 percent last year to a 32.1 percent market share.

Toyota was the best- selling brand last year with a 26.8 percent share, followed by Honda at 14.8 percent and Nissan at 9.5 percent.

The Honda Civic was the best-selling car in Hawaii last year with the Toyota Corolla and Toyota Camry ranked second and third, respectively. The light-truck leader was the Toyota Tacoma, followed by the Toyota 4Runner and Honda CR-V.

The state’s hybrid/ electric vehicle market share increased to 7.7 percent in the fourth quarter as registrations of those types of vehicles rose 3.5 percent for the year over 2017. The Toyota Prius, Tesla Model 3 and Nissan Leaf were listed as the best-selling models for the year in the combined new retail hybrid and electric vehicle category.

New-vehicle registrations were mixed among the islands. Big Island and Kauai registrations were both up 0.2 percent while Maui registrations fell 9.8 percent and Oahu registrations dropped 4.6 percent.