ARLINGTON, Va.—Total vehicle sales fell to 12.7 million annualized units in May from 14.5 million annualized units in April; monthly sales levels were down 24.8% year over year.
"Auto sales fell last month to the lowest level of the calendar year as supply constraints show no sign of easing," said NAFCU Chief Economist and Vice President of Research Curt Long. "In May, used car prices rose after three straight months of decline according to Manheim, which may reflect the decline in inventories. Honda, Toyota, and Ford have already announced major cuts to production for May as chip shortages continue to plague the industry. Higher rates may also be dampening demand, but the larger issues remain on the supply side.”
Car sales fell to 2.7 million annualized units last month, and light truck sales fell from 11.5 million annualized units to 10 million.
Domestic production in April was up 8.4% from the same month in 2021. The inventory-to-sales ratio slightly decreased in April to 0.46%.
"NAFCU expects auto sales to remain muted and volatile over the rest of the year, as relief from chip shortages looks increasingly unlikely in 2022," concluded Long.
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