New vehicle supply drops to record level – Remarketing
The US auto industry entered July with historically low inventories that sparked record prices, according to Cox Automotive analysis of vAuto on-hand inventory data.
The total US supply of unsold new vehicles available stood at 1.13 million vehicles at the end of June. That was down from 1.78 million vehicles at the end of May and to 2.24 million at the same time in April.
Supply has been declining since mid-December. Inventories towards the end of June were 57% below levels for the same period in 2020 and 70% below the same period in 2019, according to an analysis by Cox Automotive.
The supply of days fell to a record high of 25 days, down from 35 in the previous month and 44 in the previous month. The supply of days towards the end of June was 64% lower than the same period a year ago.
The stock of new non-luxury vehicles fell below the million unit mark to 933,532 vehicles for a 25-day supply. This compares to 1.3 million vehicles for a 34-day supply a month earlier and 1.9 million vehicles for a 43-day supply at the end of April.
The luxury vehicle inventory was 194,243 vehicles for a 31-day supply, up from 41 in the same period in May.
Cox Automotive Days Offer is based on the Daily Sell Rate for the most recent 30-day period. In June, new vehicle sales slowed from their previous breakneck pace at a seasonally adjusted rate of 15.4 million vehicles, down from 17 million in May and 17.2 million in June 2020.
“The pace of sales is definitely slowing down and limited supply is probably the cause,” said Charlie Chesbrough, senior economist at Cox Automotive. âMarket watchers expected this slowdown to happen earlier in the summer, but deals were still able to be made. Now, however, there simply aren’t enough products available.
Record prices can also scare consumers. At the July opening, the average listing price for new vehicles was $ 41,016, the first time it exceeded $ 41,000. The average listing price was 7% above the same period a year ago and 12% above 2019 levels.
For non-luxury vehicles, the average listing price was $ 37,637, up from $ 37,284 at the June opening. For luxury vehicles, the average listing price has remained above the $ 60,000 mark, but at $ 60,659 it has fallen from the records set in recent months.
Kia ties Toyota for lowest day supply
Kia matched Toyota for the lowest day supply at a measly 15. The new Kia Carnival and the ever-popular Telluride SUV had single-digit day supply – the lowest of any model. Toyota’s RAV4 SUV and Tacoma and Tundra pickup trucks had less than 15 days of supply. Toyota again had several models with less than 20 days of supply.
Honda has joined the ranks of non-luxury brands with extremely low inventories, especially of its new Civic, with an 18-day supply. Mazda, which has cut production in Japan, was at 22-day low. As usual, Subaru had low reserves, which clearly hurt its June sales. Chevrolet and GMC continued to have well below average inventories. Chevrolet had many models of SUVs and trucks with inventory less than a 20-day supply.
On the luxury side, Lexus was once again the brand with the lowest 17-day supply stock, but now Land Rover is in a similar situation.
Minivans Rank Rock Bottom for Inventory
Again, minivans saw the lowest inventories among the segments. Stellantis’ minivan plant in Canada remains closed, as it has been for months. Kia’s new Carnival has single-digit inventories. Toyota’s new Sienna also has few supplies.
As has been the case for months, SUVs and crossovers of most sizes and price categories had below-average inventory at the July opening. Inventories of full-size trucks were also below average. Ram had enjoyed a healthier supply than rivals GM and Ford, but Stellantis was forced to cut production this month.
On the other end of the spectrum, cars, especially large and luxurious ones, had the highest inventories as well as electric vehicles and smaller SUVs.
Across the price range, the supply of days ranged from 19 for the cheapest vehicles to 30 for vehicles in the $ 50,000 to $ 60,000 category.
New vehicle inventory report here
Originally posted on Re-marketing of vehicles