ATLANTA, Georgia
,
May 27, 2022
(press release)
–
With no relief from elevated prices and tight new-vehicle inventory, U.S. auto sales in May are expected to drop to their lowest level of the year in May. According to the Cox Automotive forecast released today, the seasonally adjusted annual rate (SAAR) of new-vehicle sales in May is expected to hit 13.1 million, a step backward from April's 14.3 million level and far below the 16.9 million level posted in May 2021. May sales volume is forecast to finish near 1.14 million units, down 9% from last month and nearly 28% from one year ago. Last year, in May 2021, new-vehicle sales reached 1.59 million, the second-best month of 2021 by volume, behind only March. While high prices and tight inventory are negatively impacting new-vehicle sales this month, the low sales volume can also be attributed to the calendar. There are 24 selling days this month, three fewer than last month and two fewer than May 2021. Tight inventory isn't the only headwind facing the market. Other issues may be having a growing impact. Rising interest rates and higher prices, and the resulting increase in monthly payments, are likely hurting demand as well. Vehicle affordability in the U.S. continues to worsen, according to the Cox Automotive/ Moody's Analytics Vehicle Affordability Index. In addition, lower consumer optimism in the wake of high inflation, surging gas prices, and a volatile stock market may be keeping some potential buyers from entering the market. "Historically, the daily sales pace is higher in May than in most other months, with spring optimism in the air, thoughts of summer road trips on the horizon, and the buzz of Memorial Day sales," said Charlie Chesbrough, senior economist at Cox Automotive. "But many of the industry's normal patterns have been overturned by tight inventory and the lingering effect of the global pandemic." May 2022 Sales Forecast Highlights May 2022 Sales Forecast Sales Forecast1 Market Share Segment May-22 May-21 Apr-22 YOY% MOM% May-22 Apr-22 MOM Mid-Size Car 70,000 110,104 77,306 -36.4% -9.5% 6.1% 6.2% 0.0% Compact Car 75,000 138,228 83,518 -45.7% -10.2% 6.6% 6.7% -0.1% Compact SUV/Crossover 170,000 258,155 186,251 -34.1% -8.7% 14.9% 14.9% 0.0% Full-Size Pickup Truck 160,000 203,730 176,078 -21.5% -9.1% 14.0% 14.1% 0.0% Mid-Size SUV/Crossover 215,000 267,827 236,571 -19.7% -9.1% 18.9% 18.9% 0.0% Grand Total2 1,140,000 1,590,620 1,251,793 -28.3% -8.9% 1 Cox Automotive Industry Insights data All percentages are based on raw volume, not daily selling rate. About Cox Automotive SOURCE Cox Automotive
2 Total includes segments not shown
Cox Automotive Inc. makes buying, selling, owning and using vehicles easier for everyone. The global company's more than 27,000 team members and family of brands, including Autotrader®, Dealer.com®, Dealertrack®, Kelley Blue Book®, Manheim®, NextGear Capital®, VinSolutions®, vAuto® and Xtime®, are passionate about helping millions of car shoppers, 40,000 auto dealer clients across five continents and many others throughout the automotive industry thrive for generations to come. Cox Automotive is a subsidiary of Cox Enterprises Inc., a privately-owned, Atlanta-based company with annual revenues of nearly $20 billion. www.coxautoinc.com
* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistrubte or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.
