Navigating the Surge in Light Vehicle Sales: Strategies for Success
The surge in Light Vehicle Sales Continues
According to S&P Global Mobility, light-vehicle sales volume in May 2023 is projected to reach 1.31 million units, marking an 18% year-over-year increase. This represents the 10th consecutive month of volume improvement compared to the previous year.
Supply Chain Easing and Increased Inventory
Supply chain issues have been gradually easing since the second half of 2022, leading to consistent increases in retail advertised inventory levels. As summer approaches, vehicle listings have stabilized at around 2 million units, reflecting a 67% increase compared to the previous year.
Market Conditions and Consumer Uncertainty
Chris Hopson, principal analyst at S&P Global Mobility, highlights the contrasting market conditions of improving inventory and uncertain consumers. While there is potential for immediate-term sales growth as inventory levels progress, gathering economic headwinds suggests potential volatility in the second half of the year.
Stability in Sales Volume Expected
The analysis suggests that sales volumes in the upcoming months are likely to follow the current trend without significant fluctuations. However, consumer choices may be influenced by factors such as increased inventory, sustained downward pricing pressure, and challenges related to affordability, macroeconomic uncertainty, rising interest rates, and tighter credit conditions.
