US auto sales slide, but electric vehicles hit new record
Car sales in the US fell to 1.15 million units in June, down by 12% compared to the same month in 2021. For the first six months of 2022, total sales were just under 6.9 million, representing a year-on-year decline of 17.8%.
The decline for new car sales accelerated in Q2 to 20% compared to Q2 2021 and according to analysts at Cox Automotive, this is due to tight inventory holding back the market and is forcing prices upwards.
This has led to some buyers being held back from making purchases as many sales are being closed above list price. However, there is still good latent demand, according to Cox, and an increase in available supply could lead to higher sales.
Lower production and availability of new cars has been caused by the worldwide shortage of semiconductors and current inventory is 38 days’ supply.
At the end of Q2, Cox Automotive lowered its full-year forecast to 14.4 million new-vehicles sales, down from an end-of-Q1 forecast of 15.3 million. Sales in 2021 in the US market exceeded 17 million units.
So far this year, the market has been dominated by SUV sales which account for 52% of the market; pick-up trucks with 20% market share and passenger cars came in at 24%.
A big increase has been seen in electric vehicles which grew 65% year-on-year, with more than 200,000 vehicles sold in Q2, a record figure.
Image shows the Hummer EV SUV.
