ARLINGTON, Va.—Total vehicle sales declined to 12.4 million units from 12.9 million annualized units in December, with monthly sales levels down 24% year over year.
Curt Long, NAFCU
"The auto market is having a difficult time breaking out of its malaise, and sales in December declined slightly from already low levels," said NAFCU Chief Economist and Vice President of Research Curt Long. "High gas prices and low inventories are each taking a toll.
"On the supply front, KPMG says it could take until October 2023 for vehicle supply to meet projected demand," Long added. "According to Moody's, the decline in unit sales did not prevent automobile lending from achieving new highs."
Car sales were flat last month, holding at 2.6 million annualized units, while light truck sales fell from 10.3 million annualized units to 9.8 million.
Domestic Production is Down
Domestic production in November was down 41% from the same month in 2019. The inventory-to-sales ratio, already at the lowest level on record, sank again in November to a new low.
"Unfortunately, the near-term outlook for auto sales is not positive, as supply chain issues will continue to hurt sales and an approaching rate hike from the Fed may also dampen demand,” concluded Long.
Curt Long, NAFCU
"The auto market is having a difficult time breaking out of its malaise, and sales in December declined slightly from already low levels," said NAFCU Chief Economist and Vice President of Research Curt Long. "High gas prices and low inventories are each taking a toll.
"On the supply front, KPMG says it could take until October 2023 for vehicle supply to meet projected demand," Long added. "According to Moody's, the decline in unit sales did not prevent automobile lending from achieving new highs."
Car sales were flat last month, holding at 2.6 million annualized units, while light truck sales fell from 10.3 million annualized units to 9.8 million.
Domestic Production is Down
Domestic production in November was down 41% from the same month in 2019. The inventory-to-sales ratio, already at the lowest level on record, sank again in November to a new low.
"Unfortunately, the near-term outlook for auto sales is not positive, as supply chain issues will continue to hurt sales and an approaching rate hike from the Fed may also dampen demand,” concluded Long.
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