Carmakers’ new-vehicle inventory has dropped to a record low in the U.S. as the global chip shortage hampers efforts to keep up with voracious auto demand.
Inventory on dealer lots stood at just 23 days’ supply at the end of May, down from 33 days a month earlier, JPMorgan analysts led by Ryan Brinkman wrote in a report Thursday. The industry norm is around 60 days.
At $38,225, the average price of new vehicles set another all-time monthly high, Brinkman wrote. He expects cars to keep getting costlier as supply-starved automakers slash sales incentives until semiconductor availability improves.
“We don’t think inventory is likely to begin to improve until late summer and potentially not normalize until 2023-24 time frame,” Joe Spak, an analyst at RBC Capital Markets, wrote in a report.
– By Craig Trudell (Bloomberg)
– With assistance from Daniel Curtis