Inventory Hits Two-Year High as Demand Falls
May supplies reached 1.96 million, well above a year earlier, though still under historical norms.
Days’ supply ticked up by one to 55 by month’s end, 46% higher than a year earlier.
IMAGE: Pexels/Vitali Adutskevich
U.S. new-vehicle inventory ended May at a two-year high of 1.96 million, up 73% from a year earlier, as consumer demand waned, Cox Automotive reported.
Days’ supply ticked up by one to 55 by month’s end, 46% higher than a year earlier, it said. Cox puts 60 days is the historical normal.
“The month of May ended on a slightly less positive note than when it started, suggesting some weakening of demand,” said Cox Senior Economist Charlie Chesbrough.
“Sales for new vehicles began to decline near the end of the month, after rising throughout the month as supply continued to increase. That caused days of supply, which is based on active supply and the daily sales rate, to edge higher.
Meantime, prices for new vehicles slipped, another indication of slightly weaker demand.”
Inventory is still low by historical standards, Cox said. It stood at 2.99 million, or 92 days' supply, in May 2020, before the pandemic-influenced chip shortage choked off supply chains.
May’s new-vehicle sales surged by 23% year-over-year, partly on strong sales for fleets, Cox said. The seasonally adjusted annual rate, or SAAR, was 15 million, beating analyst forecasts.
Originally posted on Auto Dealer Today
More Showroom
New-Vehicle Prices Stay Put
Affordability pressures and model availability shaped new-vehicle sales in September, according to an analysis by Kelley Blue Book.
Read More →
EV Buyer Consideration Shifts
What drives American consumers to purchase an electric vehicle is shifting as the question moves away from Should I?' to 'Which features and experience do I want to have?'
Read More →
Year-to-Date Auto Sales Holding Their Own
A forecast through August shows that automakers have shifted strategies to keep deliveries and revenues up despite tariffs and other economic challenges.
Read More →
Slow to Robo
Ten years of polling consumers shows autonomous vehicles’ profiles have risen considerably, but even more people now want at least some level of control if they go that route.
Read More →
Dealers a Little Down
A third-quarter Cox Automotive survey finds them in a mixed mood, bummed by fallen customer traffic but encouraged by better profits, costs and EV interest.
Read More →
European EV Sales Skyrocket
The EV market on the continent held strong in July with almost 25% of new-car sales being fully electric units, a stark contrast to the U.S., where EV sales declined about 42%.
Read More →
Mitsubishi Unveils U.S. Plan
The automaker announced a strategy that includes an expanded lineup and dealership presence, along with more ‘rugged’ and electric models.
Read More →
Used Lots Getting the Business
Many consumers are seeking out the units to save money, and the demand – higher in July than normal – is keeping supply limited and prices up.
Read More →
Used Market Stabilizes
The Carfax Used Car Index noted a major drop in used-vehicle price increases in July after several months of hikes.
Read More →
California Hybrids Reach State Record
The Golden State still leads the country in electric-vehicle registrations, but much like the rest of the U.S. its hybrid market share is up while full electrics stabilize after a dramatic first-quarter dip.
Read More →