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The Honolulu Advertiser

Posted on: Wednesday, May 18, 2005

Sales of new vehicles expected to slow in '05

By Sean Hao
Advertiser Staff Writer

Sales of new vehicles in Hawai'i are expected to dip 1.8 percent this year following single-digit sales growth last year.

New vehicle registrations statewide also may drop slightly next year, according to a forecast released yesterday by the Hawaii Automobile Dealers Association.

Last year sales rose by 5.1 percent to a record 65,882 vehicles after rising by 17.6 percent in 2003. This year sales are expected to dip to 64,696 units.

While sales may weaken slightly, the overall market remains buoyed by strong job and income growth, incentive programs and relatively low interest rates.

Curt Lee, general manager for Servco Automotive, which operates dealerships on O'ahu, Maui and Kaua'i, said sales should remain about level with last year.

"We think we'll sell just as many vehicles in 2005 as we did in 2004," he said. "The economy is still strong. Of course the industry is cyclical, but we don't see any big dip."

During the first three months of this year new-vehicle sales fell 2.5 percent from the same period a year ago. Despite higher gasoline prices the share of light-truck sales rose 1.2 percent from the year-ago period.

Lee said Toyota's hybrid gasoline/electric high-mileage Prius remains popular and has a two-month waiting list of buyers.

Spurred by strong sales, the total number of vehicles statewide rose 4 percent to 1.1 million last year.

Reach Sean Hao at shao@honoluluadvertiser.com or 525-8093.