Chip shortage is affecting actual new car sales

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  • The backlog of available new car inventories has been cleared after production was hit by a pandemic and related issues. Shortage of chipsAccording to the data and analysis team of Black book..
  • New car sales in June were down about 14% compared to pre-pandemic figures in 2019, according to Black Book data and analytics teams.
  • It could worsen in the short term as the number of new cars available on the market has dropped significantly and production has not yet caught up with demand.

    The shortage of semiconductor chips, which is affecting new car supply and raising used car prices, is officially, specifically, affecting new car sales. Not surprisingly, all dealers and shoppers knew this was coming, but now there is data to prove it.

    June car sales

    Black book

    New car sales fell by about 14% in June, according to figures collected by Hearst’s data and analytics division, BlackBook. Until 2019 (2020 was in the middle of a pandemic, so it’s not a good marker to compare with the “normal” one). It was the first month that the shortage affected actual sales. As you can see from the graph above, which shows the average number of new listings using the two-week moving average, the number of new cars available on the market has dropped significantly.

    Based on the approximately 3.4 million units in May 2020, the number of new vehicles sold decreased to approximately 2.5 million units by July last year. But then it stopped declining and remained between about 2.2 million and 2.7 million for about nine months. Things started to decline in May and are just continuing to fall. The number of new retail listings in mid-July 2021 was approximately 1.2 million.

    Alex Yurchenko, Senior Vice President of Data Science and Analytics at the Blackbook, said: “Inventory was declining rapidly throughout the spring [as] Dealers sold everything they got with very low incentives and fast speeds. “

    In the future, the second half of 2021 could be another wild roller coaster for those considering buying or selling a car.

    “Sales in at least the third quarter remain below 2019 (and 2020) levels, with some recovery expected later this year,” Yurchenko said. “The timing is still unknown. Talking to OEMs doesn’t help. As production recovers, we expect more incentives as many OEMs fight to regain market share.”

    Approximately 17 million cars were sold in the United States in 2019, and the industry has moved that much metal for the fifth consecutive year. According to Yurchenko, Black Books’ current forecast for 2021 sales is only 16 million units, with shortages causing sales to decline in the third and possibly fourth quarters.

    “Our current view is that it will get worse before it gets better,” he said.

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Chip shortage is affecting actual new car sales

Source link Chip shortage is affecting actual new car sales

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