Consultants JD Power and LMC Automotive said in a joint forecast Tuesday that US retail sales of new vehicles are expected to fall by nearly a quarter in September, hurt by dwindling inventories, even as consumer spending remains strong. .
New vehicle retail sales in the United States were seen falling to 888,900 units in September, from 1,182,788 a year earlier.
“September results indicate that there are not enough vehicles available to meet consumer demand,” JD Power said in a statement.
While demand for personal transportation remains sky high, with consumers prepared to spend billions in September, automakers are troubled by semiconductor shortages and supply chain disruptions.
JD Power said the gap between demand and supply is leading to record vehicle prices, with average trading prices expected to hit an all-time high of $42,802 in September.
JD Power said prices of older vehicles are also starting to heat up as the fall season approaches after cooling off in late June and July.
LMC Automotive has warned that due to worsening disruptions, the recovery in the auto industry could be pushed forward to 2022, if not 2023.
The September seasonally adjusted annual rate for new vehicle sales will be 12.2 million units, down four million units from 2020 and about 800,000 units lower than 2019.
Major automakers, including General Motors Co. and Tesla Inc., are set to report monthly and quarterly deliveries over the next two weeks.
This News Originally From – The Epoch Times