GlobalData unit LMC Automotive reported that in April the problem of low inventory in the US – caused by a lack of parts – reduced, which limited car sales this year.
The U.S. car market reached 1.26 million units in April, down 17% year-on-year, but volume has increased by about 5,000 units since March. Moreover, the annual sales figure increased to 14.7 million units, about 1.3 million units more than in March.
The LMC said April had the same 27 selling days as March, but it is traditionally a weak month. Nonetheless, slightly better inventory levels and some recovery in fleet sales helped OEMs sell more than 300 units a day.
In the first four months of 2022, U.S. car sales totaled 4.55 million units, down 16% from a year earlier. This volume has also decreased by 14% since 2019, but increased by 8% compared to 2020, when the pandemic was already having a negative impact on sales.
The LMC expects demand constraints to be with the industry in 2023. The 2022 outlook remains at 15.3 million units after a downward revision last month.
However, in the second quarter, North American production was about 75,000 units higher than the LMC forecast, which he said was “well received news to restore some supply.”
LMC U.S. sales forecast for 2023 is also unchanged at 16.5 million units, up 8% from 2022. High transaction prices and rising interest rates are the opposite of further market recovery, it says. Moreover, the risk of further slowdown in economic growth or even recession has increased as “the federation is on a tightrope in managing inflation.”
US stock levels are rising slowly
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