DETROIT – Sales of new cars in the U.S. are still strong but showing signs of slowing due to concerns about inflation and a global shortage semiconductor chips, which continues to reduce auto production and dealer inventories.
Analysts believe that automakers sold approximately 4.5 million vehicles in America in the second quarter. This is a 52%-53% increase over a year ago, when Americans were forced to flee their homes and close down their auto dealerships temporarily. Major automakers will release their June and second quarter sales data on Thursday. Ford is expected to release its results on Friday.
Despite the impressive sales recovery following the coronavirus pandemic, sales are slowing this year. Deutsche Bank analyst Emmanuel Rosner predicts that June’s sales pace will be 15.7 Million Vehicles, down from 17.1 Million in May and 18.6M in April.
The industry’s monthly sales pace measures the number of cars it would sell if it sold the exact same amount each month. It is a key indicator of industry health and consumer demand.
Rosner stated in an investor note that the slowdown in sales was likely due to a shortage of dealer lots and not a decrease in consumer demand. Rosner made this statement before the release of second-quarter and June sales data, which will be released on Thursday.
According to auto research firms Cox Automotive, Edmunds, sales for all major automakers are expected to rise by double digits in the second quarter of 2019 compared to last year. They are only slightly higher than the second quarter 2019.
Sales prices for new vehicles are not slowing down due to the tight supply of global chips and strong consumer demand during the coronavirus pandemic.
According to J.D., the average transaction price of a new vehicle will reach $40,206 in June. LMC Automotive and Power. According to the companies, the previous month’s highest record, $38,539 was set in May 2021.
While higher prices have led to greater profits for retailers and automakers, it has also sparked inflation concerns. The second-quarter record for consumer spending on new cars is $149.7billion, an increase of 60.7% over 2020 and 27.9% over 2019.
READ ALSO:Los Angeles: An illegal fireworks cache explodes, causing 17 injuries
“Despite the fact that inventory shortages have limited the number of vehicles sold to consumers,” said Thomas King, president of J.D. Data analytics division at J.D. The underlying strength in consumer demand is evident. Thomas King, president, J.D.’s data and analytics division, stated that consumers are purchasing more expensive vehicles despite lower discounts. This is significantly increasing both manufacturer and retailer profitability. Power in a statement.