According to LMC Automotive, automakers were able to report their highest month of light-vehicle sales in the United States since April thanks to an improving inventory and stable demand. This is another indicator that the ongoing microprocessor shortage may be easing. According to LMC, October volume increased by 11 percent to 1.17 million. The publically released monthly sales numbers for the seven manufacturers showed an increase of 5.9 percent overall. According to Motor Intelligence, the seasonally adjusted annualized rate of sales for the month was 15.28 million, which is up from 13.39 million a year earlier. This number was calculated using seasonally adjusted annualized rates.
According to Charlie Chesbrough, senior economist at Cox Automotive, in a statement, "The car market is being supported by increasing inventories and product availability for some, but not all, brands." "However, rising interest rates are making monthly payments more expensive for everyone, and as a result, a significant number of prospective purchasers are being priced out of the market."
The best-selling models of the corporation all experienced significant increases in sales: the Camry rose by 68%, the RAV4 by 40%, and the Tacoma by 44%. The carmaker reported that it completed the month of October with only a 20-day supply of vehicles, which included 143,761 cars and light trucks. However, less than 20% of those vehicles were at dealerships, with the other vehicles being at a port or in route.
Hyundai reported that its retail deliveries grew by 11 percent to a record high of 58,315 in the month of October. In light of the limited inventory, the company is placing a higher priority on more profitable retail operations; fleet shipments are expected to account for only 0.4 percent of revenues in 2022. The Chief Executive Officer of Hyundai Motor America, Randy Parker, was quoted as saying in a statement that "Demand is still there," and that "our lineup of EV vehicles contributed to record sales this month." The number of Kia Sportages sold increased by a factor of two year on year.
Hyundai reported that it finished the month of October with 31,529 automobiles and light trucks in inventory, which is a 27 percent increase from the previous month and a 58 percent increase from the previous year. Prior to the epidemic, the corporation usually had at least 140,000 vehicles in stock at any given time.
Ford sales declined 10 percent, and Honda sales plunged 16 percent. Both automakers were constrained by a lack of available parts. In spite of the decline, Ford reported that the company's gross inventories of vehicles in dealer stock and in transit continued to climb, hitting 340,900 at the end of October. That's 9.8 percentage points greater than it was at the month's end and 42 percentage points more automobiles than it had a year ago at this time. According to Ford, more than half of its gross stockpiles are still in the process of being shipped, which is a reflection of the lengthier delivery periods that continue to be a problem for the industry. The automobile manufacturer also stated that it was continuing to experience record demand for 2023 vehicles, with retail orders increasing by 134 percent in comparison to orders for 2022 models at the same point in time the previous year. For the third month in a row, approximately half of Ford's retail sales came from orders that were submitted in advance. This trend continued in October.
According to J.D. Power and LMC, new-vehicle prices have continued to hit new milestones, and it is anticipated that the average transaction price will exceed $45,599 in the near future. This would mark a new all-time high for the month of October and be 2.7 percent greater than the previous year. According to analysts, they anticipate a slowdown in price hikes due to the comeback in stocks as well as higher borrowing costs for customers. As people become increasingly priced out of the market for new vehicles, falling costs of used vehicles have become another headwind for the market for new vehicles.
"We expect to see some degradation in per-unit pricing and profitability in the coming months," said Thomas King, head of J.D. Power's data and analytics group. "We expect to see some deterioration in per-unit pricing and profitability in the coming months." "However, nearly fifty percent of new automobiles are still being sold at a premium over the manufacturer's suggested retail price; the industry is recalibrating to a pricing situation that is more stable."