spot_img

April U.S. auto sales poised to rise on improving inventory levels

According to a joint auto sales forecast from J.D. Power and LMC Automotive, total new-vehicle sales, including retail and non-retail transactions, are expected to hit 1,316,500 units in April, representing a 9.8% increase from April 2022. When adjusted for the number of selling days, sales volume will increase 5.7% year-over-year.

New-vehicle retail sales for April are anticipated to reach 1,087,400 units, a 5.9% jump from April of 2022. When comparing sales volume without adjusting for the number of selling days, the increase from 2022 is 2.0%.

Despite robust auto sales, new-vehicle supply closed March at its highest level in two years, but it might not be enough to bring prices down. vAuto inventory data revealed that the available new-vehicle supply volume at the beginning of April was 70% higher than last year. The days’ supply has remained at the mid-50-day level, nearly 60% higher than last year.

According to Thomas King, president of the data and analytics division at J.D. Power:

“With the significant improvement in overall new-vehicle availability from a year ago, dealer margins are declining and manufacturer incentive spending is increasing. Nevertheless, the demand for vehicles in the retail market remains strong due to pent-up demand from pandemic-related production shortages. Overall, the retail sales pace continues to be supply constrained. Therefore, pricing and profitability remain well above historical levels.”

In April 2023, the average new-vehicle retail transaction price is projected to increase by 2.0% from April 2022, reaching $46,044. December 2022 holds the previous record for any month, with $47,362. Additionally, incentive spending per unit is expected to increase to $1,559 in April 2023, up from $1,007 in April 2022.

Stay up to date on exclusive content from CBT News by following us on Facebook, Twitter, Instagram and LinkedIn.

Don’t miss out! Subscribe to our free newsletter to receive all the latest news, insight and trends impacting the automotive industry.

CBT News is part of the JBF Business Media family.

Related Articles

Manufacturers In This Article

More Manufacturer News

Latest Articles

From our Publishing Partners