April Auto Sales Low, Supply Chain and Inventory to Blame

April 29, 2022

Low inventory, supply chain disruptions, high interest rates, and high demand are all factors in weak vehicle sales this month. 

April 29, 2022—U.S new vehicle sales for April 2022 are projected to reach around 1.2 million units. This includes retail and non-retail transactions, and overall is a 21.5 percent decrease from last year.

According to Reuters, this significant drop is due to low inventory and rising interest rates that cause prices to rise during a time of high demand.

Even though demand is still a consistent force, there are fewer than 900,000 units of inventory available at dealerships. Additionally, the automotive industry in general continues to suffer from supply chain issues. 

Cox Automotive says that April sales volumes may fall 1.7 percent in total from March. Cox does not anticipate these numbers improving much throughout the rest of 2022. 

Cox also expects that interest rates for loans in April could increase 33 points from a year ago, landing them at 4.61 percent and making these rates a contributing factor to price hikes. 

"We expect production volumes to improve in the second half of the year, but fulfilling existing orders may not allow dealer inventory to accumulate in any noticeable way," Cox Automotive Senior Economist Charlie Chesbrough said in a statement, according to Reuters.  

Sponsored Recommendations

How one auto shop was able to order 20% more parts

Learn how one auto shop talks about the benefit of using PartsTech in their shop.

Vehicle Inspection Checklist For Auto Shops

Vehicle inspections, whether digital or on paper, are crucial for auto shops, ensuring thorough assessments and fostering trust by transparently revealing a vehicle's condition...

6 Reasons Why A Digital Vehicle Inspection Is A Must-Have

In an era of growing technology and innovation, auto repair shops must keep pace with the latest advancements to meet customers preferences and remain competitive.

How Your Auto Shop Can Now Connect To 30 Tire Suppliers For Free

Yep! We have over 50 tire suppliers in our network. And PartsTech is the only platform where you can access more than 30 of those suppliers FREE OF CHARGE.