November car sales, which are expected to be confirmed by many automakers later this week, are predicted by Cox Automotive to show a market that is still constrained by limited new car supply and high prices.
Sales pace in November is expected to be significantly lower year-over-year, but some manufacturers have been able to moderately increase inventories and, as a result, increase sales, which should improve slightly from October.
“The market is sluggish,” said Charlie Chesbro, senior economist at Cox Automotive. “I believe there are potential buyers, but many are waiting on the sidelines due to limited options and high prices.”
Cox Automotive predicts that US car sales will represent a market that is constrained by limited new car supply and high prices.
Although it performed well in the first half of the year, new car sales were sluggish as inventory problems continued.
Prices are high and shoppers are familiar with it. November’s seasonally adjusted annual sales (SAAR) are projected to close to 13.4 million, down 16% from last year’s sales of 15.9 million. On the plus side, sales volume is expected to increase slightly from October, reaching the forecast of 1.05 million with an increase of less than 1%. There are 24 sales days in November of this year, one more day than last year, but the additional days will minimize the impact on overall volume.
With the arrival of the New Year’s Christmas and New Year’s season, the shortage of new car inventories available will be a nuisance for both dealers and consumers.
Holiday sales are an important sales period, and December is often one of the most voluminous months of the year, especially for luxury goods. It seems unlikely that there will be a surge in sales at the end of this year.
The market will continue to be constrained next year, but the worst inventory problems can be a thing of the past. Many OEMs say they expect continuous but slow improvements in production and distribution as global supply chains solve post-pandemic problems.
Also, according to sales data, the September market could have bottomed out with SAAR at 12.2 million. Since then, the sales pace has improved. However, new variants of the coronavirus could continue to rock the car market until 2022.
Limited supply, high prices, slow sales in the US in November
Source link Limited supply, high prices, slow sales in the US in November