Inventories grow as automakers overcome worst supply issues

Supply of new, unsold vehicles in the United States, boosted by inventories of electric units, continued to increase in June, with days of supply standing at 53, according to data from Cox Automotive and the Automotive News Research & Data Center.

Cox estimated unsold inventory at 1.95 million vehicles at the end of June, only slightly lower that in May, when inventory marked the highest level since April 2021. Toyota and Honda vehicles represented nine of the 10 nameplates with the fewest number of days’ supplies.

New-vehicle sales in June rose 20 percent from the previous June and posted the highest volume since May 2021, Cox reported. The seasonally adjusted annual rate of sales (SAAR) climbed to 15.7 million in June, up from May’s 15.1 million rate and 13.0 million in the year-ago June. Sales into fleet and increasing incentives supported the sales gain.

The “asking” prices for new vehicles remained stable at $47,571 at the end June, very slightly up from $47,487 at the start of the month.

“Sales of new vehicles closed the first half of 2023 surprisingly strong,” said Cox Automotive Senior Economist Charlie Chesbrough. “Pent-up demand from individuals and businesses that could not find their product or a price they were willing to pay last year was unleashed.”

There was a 103-day supply of EVs as the month closed, with 90,963 units reported, and the average listing price at $63,486 (the data does not count Tesla, which sells direct to consumers). The car with the least dealer inventory was the BMW I4, with 40 days’ supply, Cox said.

Cox also pointed out that inventory levels were lowest among lower-priced vehicles, with stocks growing roughly as price increased. The inventory of luxury vehicles (excluding ultra-luxury ones) stood at 310,304 at the end of June for a 62 days’ supply, said the report. Luxury vehicle supply has been mounting for the past few months

Among the seven automakers still reporting monthly sales and inventory figures, six saw their days’ supply levels increase last month, between one and four days, with only Volvo staying level, according to figures provided by the Automotive News Research & Data Center.

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