According to a joint analysis released on September 28 by J.D. Power and GlobalData, strong demand is expected to lead to new car sales growth in the U.S. for the sixth month in September. However, the United Auto Workers (UAW) union strike has overshadowed the industry’s future.
U.S. new vehicle sales, including retail and non-retail transactions, are expected to reach 1,309,900 units, a 13.8% jump from a year earlier.
Thomas King, head of J.D. Power’s data and analytics group, said, “There could be disruption to sales results in October and beyond, depending on the duration and magnitude of the work stoppage.”
Moreover, retail inventories could rise 36.5% year on year in September but remain significantly below pre-pandemic levels.
Dealer profits, squeezed by elevated interest rates, declined due to increased vehicle supply, with fewer vehicles being sold for higher than their sticker price. Compared to the prior projection of 86.8 million units, global sales for 2023 are anticipated to reach 87.9 million units.
On the other hand, “The wildcards to the finish of 2023 are the U.S. market—which the ongoing UAW strike may influence—and China, with a price war that is attracting more consumers into the new-vehicle market but is negatively affecting OEM margins,” said Jeff Schuster of GlobalData.