SAN FRANCISCO -

NADA announced today at its annual conference in San Francisco that it is expecting the lower cost of gasoline to continue to increase sales for light trucks in 2015.

Original sales projections by the NADA predicted 16.4 million new-vehicle sales for 2014, which was on target – the association is expecting an estimated 16.94 million in sales of new vehicles and light trucks in 2015.

Of that nearly 17 million in expected sales, the NADA predicts that, due to the lower cost of fuel, 56 percent will be comprised of light trucks and SUVs, while 44 percent will be cars.

“Consumers are more able to spend for extras because of declining gasoline prices and continued low interest rates,” said Steven Szakaly, NADA chief economist.

“We expect to see significant growth in sales of light trucks, particularly in the large-size CUV and SUV segments,” Szakaly added. “At the end of the day, consumers like the utility and comfort that larger vehicles provide. Lower gasoline prices accelerate that shift.”

In other segments, small and midsized vehicles are likely to face a rougher market than their truck counterparts, but Szakaly expects the incentives on these vehicles to rise. Hybrid sales are also expected to remain slow as long as fuel prices remain low.

“The one area where prices and segment share are likely to remain stable is in the luxury segment,” Szakaly said. “A strong luxury brand, in any retail business, will hold extra goodwill that a consumer is willing to pay for.”

The NADA expects the GDP to rise 3.1 percent this year, with potential growth beyond that. It perceives little threat of inflation, although key policy rates from the Federal Reserve are expected to rise 50 basis points by the end of 2015.

“The U.S. economy is poised to accelerate in 2015,” Szakaly said. “The only negative remains stagnant wages. If we see some sustained rise in incomes, GDP could easily exceed our forecast.

“Interest rates have to raise, admittedly the chaos in some overseas markets and the strong deflationary pressures from a rising U.S. dollar and a slowing Chinese economy leave room for rates to rise slowly.”

Overall, Szakaly says all signs seem to point in an optimistic direction.

“The bottom line is that it will be a good year for consumers with great products that last longer, are more fuel efficient and are safer than ever before,” Szakaly said. “It’s always been about consumer choice and the benefits of a competitive market, and that is definitely what we have.”