Tighter inventories in theory mean higher prices or lower incentives bad news for buyers.
April new vehicle U.S. retail sales continued a modest recovery in the second half of the month despite growing inventory concerns, specifically with compact segment models, according to J.D. Power and Associates, which gathers real-time transaction data from more than 8,900 retail franchisees throughout the United States.
The retail auto sales selling rate in April is expected to come in at 11.1 million units, while the seasonally adjusted annualized rate (SAAR) for total light-vehicle auto sales is expected to be at 13.1 million units.
“As April’s sales pace confirms, increasing gas prices and shortages in vehicle inventory have yet to trump the overall recovery that has been progressing since the fall of 2010,” said Jeff Schuster, executive director of global forecasting at J.D. Power and Associates.
“However, looking at the remainder of the year, growing uncertainty in these two variables is increasing the risk that that the industry may not reach the expected 13 million-unit level for total light-vehicle sales,” Schuster hedged.
