Reuters reported that US auto sales surged by 27% in February 2011, exceeding the most bullish analyst forecasts as the lure of discounts from automakers led by General Motors Co outweighed concerns about higher oil prices for car shoppers.

According to industry tracking firm Autodata, on an annualized basis, the sales rate for the month was 13.4 million vehicles. That was up from a sales rate near 12.6 million in December and January.

The February sales tally, which represents one of the first snapshots of US consumer demand, was the strongest since August 2009 when the government's cash for clunkers credits spurred a short lived boom at dealerships.

Auto executives attributed the unexpectedly large gains to both the lure of discounts, including cheap lease deals, along with improving consumer confidence and easier credit.

GM led with a 46% sales gain in February, stoked by incentives that also led the industry at an estimated USD 3,700 in spending per vehicle on average. Toyota Motor Corporation, which was bouncing back from depressed sales a year earlier, posted a 42% sales gain. Nissan Motor Co had a 32% increase after offering more aggressive discounts of its own. Sales of trucks, SUVs and other light trucks were up almost 32% in February despite the sharpest spike in gasoline prices at the pump since Hurricane Katrina in 2005.

Sales for Honda were up 22%. Ford and Chrysler Group lagged the industry, with sales gains of 14% and 13%, respectively.

(Sourced from www.reuters.com)