Wednesday, October 27, 2021

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    Car sales surged in Q3 as inventories depleted and supply shortages worsened

    US car sales have fallen to levels not seen since the Great Recession, as continued supply shortages have hampered car production around the world and are squeezing inventories. dealer We try to recover as much revenue as possible by increasing the margin of several vehicles that can be in stock.

    Even careful perusal of Third quarter and September sales (((Automotive News (Subscription required) There is virtually no good news.flat Toyota The slightest improvement is at best. Although many raw materials and basic components have been scarce since the pandemic caused global logistics to malfunction, the main causes of the ongoing slowdown in automotive production are: Computer chip..Some quickly turned their fingers Electric car And in other high-tech products, shortages are not really distinguished.

    As of the end of September, the industry is still up more than 13% compared to a year ago, but there are pitfalls. Q3 In 2020, it was heavily affected by the pandemic-related blockade. Demand for rental fleets plummeted to near zero as retail customers stayed home except when absolutely necessary, and vacationers and business travelers rushed to cancel. In other words, the 13% increase from 2020 makes no sense.

    For a better context, we can see another year in the past. By this point in 2019, about 13 million people New car It was sold in the United States. By 2021, that number was only 11,446,866, a decrease of more than 10%.And with Shortage of chips The 10% decline may not sound so dramatic, but the real problem is the trendline, so the situation is still raging, but only worse by the end of the year.

    Sales at the end of the first quarter increased by nearly 12% compared to 2020. This is largely unaffected by last year’s blockade. At the end of the second quarter, that number rose to over 29%. April, May and June were the most affected by last year’s blockade restrictions. This illustrates the significant improvement in 2021. Unfortunately, dealers don’t have cars to sell, so the pace of recovery is currently unsustainable.

    how’s it going Throw the entire sales environment to the off-quilter..Toyota’s sales exceed the sales of the number one seller for many years General Motors The latter struggles to build major volume models, including: Chevrolet With Silverado GMC Sierra production is stagnant due to a shortage of parts.The same was true Ford, F series pickups have been discontinued more than once in the last few months.

    For the customer, the end result is its affordability New car Incredibly few and in between.Transaction price Started to skyrocket Earlier this year and before the inventory was really disastrous The options used are often even worse.. With no end in sight, it can be a tough holiday season for car shoppers.

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    Car sales surged in Q3 as inventories depleted and supply shortages worsened

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    The post Car sales surged in Q3 as inventories depleted and supply shortages worsened appeared first on Eminetra.

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