January Retail Vehicle Sales Expected to Tumble
The industry is expected to sell 1.13 million new vehicles in January, a 3% decline over the same time last year, and a 33% decline from the month before, according to Kelley Blue Book, resulting in a seasonally adjusted annual rate (SAAR) of 17.4 million.

Photo courtesy of EveryCarListed via Flickr.

Photo courtesy of EveryCarListed via Flickr.
The industry is expected to sell 1.13 million new vehicles in January, a 3% decline over the same time last year, and a 33% decline from the month before, resulting in a seasonally adjusted annual rate (SAAR) of 17.4 million.
Of those sales, 79.2% will originate from retail sales while 20.8% are expected to come from fleet. This represents a slight decrease in percentage of retail sales from the same time last year, when 79.9% of sales originated from retail sales, the firm noted, according to Kelley Blue Book data.
"January is typically the weakest month of the year for sales, as winter weather sets in and consumers recover from big spending over the holiday season," said Alec Gutierrez, senior analyst for Kelley Blue Book. "In addition, many potential sales were likely pulled ahead into December as consumers opted to take advantage of the ample inventory and incentives available industry-wide."
Those incentives, KBB noted, are something the industry will have to look out for through 2017. In 2016, transaction prices reached some of their highest levels on record, but incentive spending rose about as much, counterbalancing the would-be profit. According to KBB, for the industry to see another record-year in 2017 would require undisciplined sales tactics driven by incentives, leasing and longer loan terms.
KBB is now forecasting vehicle sales by the end of the year at 16.8 to 17.3 million units, 1% to 4% less sales than 2016 produced.
Two manufacturers that Gutierrez expects to see sales grow in the first month of the year are Honda and Volkswagen. The KBB analyst expects Honda to realize an approximate 5% year-over-year growth primarily driven by sales of the brand’s CR-V and HR-V models.
And, demand for utilities won’t be constrained to just Honda, KBB noted. According to KBB, mid-size SUVs/ crossovers are expected to be the second highest volume segment in January. The title of top volume segment will belong to compact SUV/crossovers, and although the segment is expected to realize a slight year-over-year sales decline in January, it’s still expected to grow its share of overall sales. If demand for the segment continues on its current trajectory, KBB predicts that the Toyota RAV4 and Honda CR-V may unseat the Toyota Camry and Honda Civic as the highest-selling vehicles in the industry.
As for Volkswagen, the analyst sees the manufacturer putting the diesel scandal behind it to realize an approximate 17% year-over-year increase in sales.
"With multiple new products on the market and looking to put the diesel scandal in the past, Volkswagen Group should report large year-over-year increases, and start to gain back market share," said Gutierrez. "While new cars like the Volkswagen Golf Alltrack and redesigned Audi A4 are contributing to the automaker's growth this month, SUVs like the Tiguan and upcoming Atlas will have to become bigger players to help Volkswagen transition its sales mix toward the growing consumer preference for utilities."
More Operations

Commercial Fleet Sales Contribute To June, YTD Gains
The fleet sector has boosted its vehicle purchases at a reliable pace in the first half of this year compared with 1H 2025.
Read More →What Fleet Managers Really Want From Vendors
From customer service frustrations and technology breakdowns to RFQs, change management, and the growing impact of turnover across the industry, this conversation pulls back the curtain on the real operational challenges fleet managers are navigating every day.
Read More →Fleet Safety Masterclass: Industry Leaders on Storytelling, Strategy & Innovation
In this special masterclass episode, industry leaders break down what it really takes to build safer fleets in today’s increasingly distracted and data-driven world.
Read More →Integrating Legacy Fleet Systems and Historical Data
In this episode, we bring together fleet and technology leaders to unpack the realities of data integration, system migrations, and the evolving role of AI in fleet management.
Read More →From Resistance to Results: Change Management Strategies for Fleets
From new technologies and safety programs to evolving regulations, fleets are under constant pressure to adapt. But as Dr. Betz explains, success isn’t about the system you implement—it’s about whether your people actually use it.
Read More →Where We're Headed: A Practical Look at AI in Fleet
Discover how AI is actually being deployed in fleets, not just marketed, including practical use cases and emerging risks.
Read More →
How Coca-Cola United Protects Its Fleet from Growing Legal Risk
Growing legal exposure can put fleets at risk. Here's one company's approach.
Read More →
Fleet Managers Think They Understand Their Costs. The Data Says Otherwise.
Most fleet managers say they have a strong handle on their costs, but new research from Bobit Business Media tells a different story. A 2026 survey of 190 fleet professionals reveals a widespread "confidence gap" where fragmented systems, disconnected data, and delayed reporting are leaving major blind spots hidden beneath the surface. Find out what the data actually shows.
Read More →
Cameras, Safety and Insurance: From Reactive Claims to Real-Time Prevention (Part 2 of 2)
Part Two: Commercial auto remains one of the most challenging and costly lines of coverage for fleet operators and insurers alike. Continue learning more about how to effectively address these issues from Onur Aksan, Enterprise Business Development Executive, Geotab
Read More →
New Trucks, AI & Summer Downtime | AF News Recap
From new truck updates to AI-powered driver coaching and summer maintenance tips, this week's fleet headlines are all about keeping things moving.
Read More →

