Feb U.S. auto incentives up 17 pct from Jan-Edmunds

DETROIT, March 3 (Reuters) - U.S. auto industry incentives rose 17 percent in February from the prior month, raising consumers' expectations that with softening vehicle demand, more deals could be made, industry tracking service Edmunds.com said on Monday.

The U.S. industry's aggregate incentive spending is estimated to have totaled about $2.95 billion, with U.S. automakers General Motors Corp (GM.N: Quote, Profile, Research), Ford Motor Co (F.N: Quote, Profile, Research) and Chrysler LLC [CBS.UL] accounting for almost 71 percent of the total, Edmunds.com said.

Automakers are scheduled to release February sales results on Monday and analysts expect to see double-digit declines due to the slumping economy.

Edmunds.com analyst Jesse Toprak said incentives in recent months have been boosted to levels seen before automakers instituted "value pricing" strategies meant to cut sticker prices and reduce the need for rebates.

"To combat this soft market, automakers are once again putting remarkably generous dollar amounts on the hoods and ironically re-establishing consumer expectations that they will be offered dramatic deals," he said in a statement. "It's a car buyer's market, and that will likely be true for months to come."

Japanese automakers accounted for slightly less than 21 percent of the total, while companies from Europe and South Korea accounted for 5.5 percent and and 3.2 percent, respectively, according to Santa Monica, California-based Edmunds.com.

On an average basis, U.S. incentives in February rose almost 1 percent, or $22, from the prior month to $2,435 per vehicle sold, according to Edmunds. The average was up 8.4 percent from a year ago.

The average for combined incentives spending by the U.S. automakers was $3,393 per vehicle, up from $3,334 in January, Edmunds.com said.

Chrysler had the highest average at $3,579, followed by GM ($3,315) and Ford ($3,297), according to Edmunds.com. Nissan Motor Co Ltd (7201.T: Quote, Profile, Research) had the highest average among Japanese automakers at $2,159, followed by Honda Motor Co Ltd (7267.T: Quote, Profile, Research) ($1,119) and Toyota Motor Corp (7203.T: Quote, Profile, Research) ($1,015).