People’ demand for bigger, high-riding crossovers and SUVs gave automakers a ray of sunshine amid an in any other case dismal February gross sales month. The industrywide stock crunch attributable to the continuing semiconductor chip scarcity continues to take a toll on retail gross sales.
February auto gross sales hovered simply above 1 million automobiles and lightweight vans, representing a drop of 12.four % in contrast with the identical interval in 2021, in line with knowledge from Motor Intelligence. Greater than half of total February gross sales had been crossovers and SUVs.
Of the seven automakers that report month-to-month gross sales, solely Mazda North America and the three Korean manufacturers logged will increase, in line with the Automotive Information Analysis & Information Heart. Hyundai model gross sales had been boosted partly by its sturdy lineup of crossovers and SUVs — all of which recorded double-digit positive factors. Kia America’s SUV choices additionally garnered sturdy February outcomes.
January and February are traditionally slower months for car gross sales as shoppers retreat from winter climate and get well from vacation spending. However the present market is being additional challenged by record-low shopper sentiment due to “inflationary declines in private finance,” in line with a survey carried out by the College of Michigan. That temper, coupled with stock constraints, contributed to the weak February gross sales.
The seasonally adjusted annual price, or SAAR, additionally declined — to 14.2 million gross sales from 15.2 million in January — in line with knowledge from Motor Intelligence.
Gross sales usually drop from January to February, however “even the slightest gross sales lower could make a distinction” within the SAAR, stated Jessica Caldwell, govt director of insights for trade analysis agency Edmunds.
Edmunds forecasts that the trade will finish the yr at 15.2 million gross sales.
Caldwell additionally stated that as a result of stock stays so low for automakers, the trade’s highway to restoration faces many ups and downs.
“There’s a lot happening on the factories when it comes to logistics, all of the automakers will get well on completely different paths,” she stated. “The persistent stock points are regarding, however now we have hit the underside.
“It may get higher — simply not straight away,” Caldwell predicted.