ARLINGTON, Va.—Vehicle sales in June showed only a “modest” increase over volume in May. Sales during June rose to an annualized rate of 13-million units sold on an annualized basis, up from 12.3 million in May.
The 2020 sales levels were down 24.1% versus June 2019.
“The reemergence of the virus in many states is putting reopening plans in jeopardy,” said Curt Long, NAFCU's chief economist and vice president of research. “A second round of closures and their ensuing layoffs could be devastating for consumer confidence.
“Another immediate concern for the auto industry is the lagged effect of recent production shutdowns. Domestic production in April was down 99% from February levels, and May showed only a modest increase,” Long continued. “Despite the reluctance of many consumers to return to showrooms, it is supply constraints which dominate at the moment.”
Sales of Light Trucks Up
Sales of cars and light trucks both rose during the month, to three million annualized units and 10.1 million annualized units, respectively. When compared to June 2019 sales, light trucks were down a relatively low 18%; however, car sales fared worse and were down 39.2% from a year prior.
“NAFCU expects a slow and bumpy recovery for auto sales for the next several months, but that could set up a release of pent-up demand later in the year once inventories catch up,” Long concluded.