ARLINGTON, Va.—Total vehicle sales declined in February, dropping from 16.6 million annualized units to 15.7 million during the month. Sales also fell 6.6% since this time last year.
NAFCU Chief Economist and Vice President of Research Curt Long noted that semi-conductor shortages are having an impact on supply as automakers are cutting production levels.
“In January, the inventory-to-sales ratio was lower than any point in the past three decades, outside of the months following 9/11 and Cash for Clunkers in 2009,” said Long. “Inventory figures for February are not yet available. Low interest rates and the high prices of used vehicles will continue to fuel demand. NAFCU expects vehicle sales to remain depressed for several months, followed by a rebound after temporary supply constraints are resolved.”
Sales of cars fell slightly during the month, decreasing from 3.7 million annualized units to 3.4 million, and they remain down 20.4% year-over-year.
Light truck sales have been strong since the start of the pandemic, only declining 1.9% compared to January 2020.