May U.S. Auto Sales Are On Deck. What's Coming?

Automakers will be releasing their sales figures for the month of May this Tuesday, and investors should expect above-average volatility in the automotive industry.

Forecasts call for a seasonally adjusted selling rate of 17.3 million vehicles within the United States, which would mark the highest sales since August of last year. If the forecast is correct, sales would be down just 1 percent from last May, even though there was one fewer selling day this year.

May sales are projected to be up 10 percent from April.

What Are Experts Expecting?

Karl Brauer, Senior Editor at Kelley Blue Book, and Michelle Krebs, Senior Analyst at Autotrader, shared their thoughts in advance of the data. In interviews with Benzinga, both said they expect sales to be relatively flat year-over-year, with some companies potentially regressing slightly from May 2014's strong figures.

Related Link: Goldman's 7 Auto Industry Megatrends For The Next Decade

In particular, Brauer said Ford Motor Company (NYSE: F) may see a larger decline than most. Fiat Chrysler Automobiles NV (NYSE: FCAU), on the other hand, which has increased sales YoY in each month this year, will likely continue that trend. In general, Brauer predicts that the market will be relatively stable when the numbers are released.

Krebs mentioned that SUVs and trucks continue to be hot sellers this year. Car sales, however, are expected to drop about 5 percent according to her estimates.

Since large utility vehicles cost more on average than sedans and coupes, Brauer says that manufacturers that specialize in larger vehicles will see especially large margins and high average transaction prices -- a metric used by many analysts.

In his words, this could make companies like Ford and General Motors Company (NYSE: GM) look better than Honda Motor Co Ltd (ADR) (NYSE: HMC) and Volkswagen AG (ADR) (OTC: VLKAY), which specialize in smaller vehicles.