USA
Growth
in U.S. retail sales of new vehicles is expected to slow down further in
July because of a limited supply of automobiles caused by a global
semiconductor shortage, according to consultants LMC Automotive and J.D. Power.
Retail sales are expected to reach 1.2
million units in the month, a 3.7% increase from the same period last year when
adjusted for selling days, but a slump in expectations when compared to the
preceding months. A shortage of semiconductors has hampered automobile
production and slowed down sales growth despite strong demand for personal
transportation during the COVID-19 crisis. This has, in turn, pushed up prices.
The consultants had forecasted sales growth of 110% for April, while the
outlook fell to 34% and 12.4% for May and June, respectively.
Average transaction prices
are expected to rise 17% to $41,044, the highest on record, while the average
incentive spending per unit is expected to fall to $2,065 from $4,235 last
year. The average number of days a new vehicle sits on a dealer lot before
being sold is on pace to fall to a record low of 31 days, down from 75 days a
year ago.
Thomas King, President, Data and analytics division, , said that, consumers will spend more money buying new vehicles than ever before in the month of July, and dealer profits from selling new vehicles will reach an all-time high.
Source: ETAuto.com
Image Source: Google Images
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