The light vehicle market remains in turmoil stemming from the ongoing COVID-19 pandemic, a new COX Automotive forecast foretells.
According to recent statistics, sales volumes over the last month stand at 1,050,000 units, down some 33% from the same time last year, but up by almost half from the month of March.
Researchers added after experiencing historical lows in annual vehicle sales last month of 8.6 million sales are expected to zoom to around 11.4 million for the month of May. Even with the uptick, however, the pace is still far below May 2019's robust 17.4 million level.
Across the industry, the month of May is a vital one as it officially kicks off the summer sales season. Going forward, Cox Automotive senior economist Charlie Chesbrough said he’s cautiously optimistic.
"Recent trends suggest daily sales are showing significant gains over March and April's collapse,” he told PR Newswire. “Data reveals the market hit a bottom around the first of April, and since then has been making a slow but steady recovery. The opening of dealerships, and whole states, over the last few weeks is greatly contributing to the upward sales trend."
But obstacles remain, including factories only beginning to restart production after being closed for the last three months stemming from the virus. That means new-vehicle inventory is at the lowest volume in more than a year, including for popular models such as trucks and SUVs.
As part of its COVID-19 Digital Shopping Study, Cox also assessed ways in which the global pandemic has impacted vehicle shopping habits, how vehicle consideration has changed and how luxury and non-luxury shoppers' purchase decisions differ.
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