ARLINGTON, Va.—Total vehicle sales fell from 15.0 million to 14.1 million annualized units in February, with monthly sales levels down 11.5% year over year.
"The auto market resumed the downward trend as sales in February fell after a brief rise in January," said NAFCU Chief Economist and Vice President of Research Curt Long. "Likewise, inventories fell again, reaching a historic low.
"Sales figures are now being determined by dealership supply rather than demand from consumers," Long added. "J.D. Power blames the low inventory levels for the record-high estimated average transaction price for new vehicles this month."
Car sales fell to 2.9 million annualized units last month, and light truck sales fell from 12 million annualized units to 11.1 million.
Domestic production in January was down 21.2% from the same month in 2021. The inventory-to-sales ratio reached a new record low in January.
"Rising gas prices are creating crosswinds by further hampering affordability, but also by acting as a catalyst for transition to pricier electric vehicles,” concluded Long. “Meanwhile, semiconductor manufacturers warn that shortages could last well into 2022 and beyond. NAFCU expects slow, choppy growth for vehicle sales in 2022.”