Recovery headwinds mount as July US auto sales slump
Last week, Cox Automotive’s July US auto sales forecast was suggesting that the market will see little change from June’s results, as supply constraints are plaguing the new vehicle market. The team expects the seasonally adjusted annual rate (SAAR) of new vehicle sales in July to increase slightly to 13.2 million from the 13.0 million pace last month, but down from last year’s level of 14.7 million. Volumes are projected to decline by about 13%.
We’ll have a full July measurement by the end of the week, but as Charlie Chesbrough, senior economist at Cox Automotive, noted, “July results will likely be another reminder of how the U.S. auto market has turned a few years ago, before the pandemic.” Today’s auto market, running on a continuous 35-day supply, simply cannot support the volume that many of us took for granted. The old market, with over 70 days of supply, is a fading one. memory, and returning About 17 million annual sales are likely to take years. This new US auto market is a lean operation, with monthly retail sales of around 1 million units being the norm. Now the challenge? Learn how to operate profitably in this new environment and be prepared to move as the market moves.,