There has been a noticeable rise in motor vehicle sales in the second quarter of 2021. Automakers feel that this rise will continue into the next year. More citizens are looking to shift to private vehicles as safety measures due to the pandemic. There are many electric vehicle launches on the horizon, and there is a demand for SUVs too. The government stimulus and the low-interest rates have also been instrumental in the rise in motor vehicle sales. But prices have seen an increase due to low inventories caused by a global shortage of semiconductors. These high prices have increased manufacturers' profits, who are looking to invest more in EVs in the near future.
General Motor's chief economist Elaine Buckberg said, "We expect continued high demand in the second half of this year and into 2022."
"The sales slow-down likely reflects a lack of availability on dealer lots rather than a decline in consumer demand as automakers struggle to replenish dealer inventories with top models, particularly SUVs and pickup trucks," Deutsche Bank analyst Emmanuel Rosner said in an investor note.
According to Thomas King, president of the data and analytics division at JD Power, "Despite inventory shortages constraining the volume of vehicles sold to consumers, the underlying strength of consumer demand is clear. Consumers are buying more expensive vehicles despite smaller discounts, which is dramatically increasing the profitability of those sales for both manufacturers and retailers."
Global Motor Vehicle Sales in Millions
Motor Vehicle Sales by Type
The Top Motor Vehicle Sales Models in the USA
USA Motor Vehicle Sales by Quarter
Motor Vehicles Sales Comparison with Previous Year
*1 Includes Sprinter
Motor Vehicle Sales – Year on Year
Motor vehicle sales are still robust in the country. There were nearly 4.5 million motor vehicle sales in the second quarter. This was an increase of more than 53% compared to the levels of last year. But the sales are showing some indications of a slow-down. Dealer inventory levels and auto production is still not at previous levels due to an overall shortage of semiconductor chips and economic inflation. Thus, the recovery of motor vehicle sales from the effects of COVID-19 is praiseworthy. However, the pace of motor vehicle sales has slowed down this year.