According to media reports, a study released on June 26th indicates that new car sales in the United States are expected to increase in June, driven by sustained growth in personal travel demand.
S&P Global Mobility stated in its report, "There are continued signs of rising automotive demand, and US car sales in June are expected to maintain the strong levels seen in the previous two months." The report shows that new light vehicle sales in the US are projected to reach 1.38 million units in June, representing a 17% year-on-year growth.
Chris Hopson, Chief Analyst at S&P Global Mobility, said, "Vehicle sales will benefit from end-of-month holiday promotions for the second consecutive month. The ability of automakers to offer holiday promotions is a positive signal. It also indicates that concerns about affordability of new cars, low inventory, macroeconomic uncertainties, rising interest rates, and tightening credit conditions have not affected consumer demand for vehicle purchases."
Joe Langley, Vice President at S&P Global Mobility, stated, "There are indications that automakers are striving to maintain their strong pricing power, but at the cost of sacrificing the ability to build inventory levels rapidly."
In recent years, automakers have benefited from rising vehicle prices; however, higher raw material costs remain one of the main challenges.
S&P Global Mobility forecasts that pure electric vehicles will account for 7% of total US vehicle sales in June this year. The report also predicts that US total vehicle sales for the full year are expected to reach 15.1 million units, a 9% increase compared to last year.
