The supply of new vehicles in the United States increased in June, boosted by inventories of Electric units. According to data from Cox Automotive and the Automotive News Research & Data Center, the unsold inventory at the end of June stood at 1.95 million vehicles, only slightly lower than in May. New-vehicle sales in June rose 20 percent from the previous June, with a seasonally adjusted annual rate of sales (SAAR) of 15.7 million, up from 13.0 million in the year-ago June.
The “asking” prices for new vehicles remained stable at $47,571 at the end June, very slightly up from $47,487 at the start of the month. The data does not count Tesla, which sells direct to consumers, but there was a 103-day supply of EVs as the month closed, with 90,963 units reported, and the average listing price at $63,486.
Cox Automotive Senior Economist Charlie Chesbrough commented that “sales of new vehicles closed the first half of 2023 surprisingly strong. Pent-up demand from individuals and businesses that could not find their product or a price they were willing to pay last year was unleashed.”
Inventory levels were lowest among lower-priced vehicles, with stocks growing roughly as price increased. The inventory of luxury vehicles (excluding ultra-luxury ones) stood at 310,304 at the end of June for a 62 days’ supply, said the report. Luxury vehicle supply has been mounting for the past few months. Among the seven automakers still reporting monthly sales and inventory figures, six saw their days\’ supply levels increase last month, between one and four days, with only Volvo staying level, according to figures provided by the Automotive News Research & Data Center.
The increase in vehicle supply is positive news for Car buyers, who can now get a good deal on a new vehicle. It’s also good news for automakers, who can now offer more competitive prices and incentives to attract new buyers. With demand for new vehicles still strong, the automotive industry looks set to remain healthy in the second half of 2023.