Lean inventories continue to hold auto sales below real demand.
The calendar indicates a new year, but the overall market conditions remain quite similar to the end of 2021. Lean inventories dragged down US sales in January to just over 1 million units, according to LMC Automotive, the independent automotive global forecasting and market intelligence company. This was the weakest January since 2014, but the 9% year-on-year (YoY) decline marks the smallest percentage loss since monthly sales turned negative in the summer of 2021.
January saw the annualized selling rate improve substantially from the average during the last six months.