Sales of new vehicles in the United States are expected to increase in May, due to strong demand for personal transportation and improving inventories in businesses, a report from industry consultants showed on Thursday.
According to a report by JD Power and LMC Automotive, US new vehicle sales, including retail and non-retail transactions, are estimated to hit 1.3 million units in May, up 15.6% year-on-year.
New vehicle transaction prices continue to rise as consumers are estimated to spend $46.9 billion on new vehicles in May, up 13% from last year, according to the report.
Despite the challenges posed by prices and interest rates, sales volume and transaction prices have shown remarkable resilience, thanks to vehicle availability and increased demand,” Thomas King, president of JD’s power data and analytics division, said in a statement.
Retail inventories increased 48% over the year. Inventory buildup could hurt dealer margins while retaining incentives from manufacturers to attract customers.
The main reason for the decline in profits (of the business) is that fewer vehicles were sold at prices above the manufacturer’s suggested retail price,” King said.
Sales of new vehicles in May grew by 9.6%, thanks to strong demand from buyers who delayed their purchases due to shortages.
Globally, light vehicle sales for the month are forecast to rise 12.8% from last year, with growth similar to that in all major markets, except Eastern Europe, where sales are expected to rise by nearly 20%, despite the protracted war in Ukraine. .