US new vehicles sales growth likely slowed in second quarter
Analysts expect the country’s automakers and vehicle retailers to recoup their lost sales in July
GROWTH in US auto sales likely slowed significantly in the second quarter this year, marred by a cyber incident at retail technology and software provider CDK, despite elevated sales for new vehicles amid steady demand and better availability.
Market research firm Cox Automotive estimates that sales volume of new vehicles in the US in the second quarter could grow 1 per cent to about 4.2 million units. New vehicle sales had surged about 16 per cent year on year, from the corresponding period in 2023.
Industry experts have forecast some impact to sales after a cyber incident at CDK affected car dealers across the US in June.
“The CDK cyberattacks have thrown a monkey wrench into sales during the second half of June, affecting what is arguably one of the most lucrative and busiest times of the month and quarter for dealerships,” said Jessica Caldwell, head of insights at Edmunds, an online marketplace for cars.
The CDK outage was the latest hiccup for automakers in the US, with more than 15,000 retail locations in the country relying on the retail technology provider for their dealer management software.
Analysts expect vehicle retailers and automakers to recoup most of the lost sales in July.
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Automakers have benefited from pent-up demand for sport utility vehicles, pickup trucks and hybrid vehicles. Discounts on certain models and incentives have also attracted price-conscious shoppers.
General Motors is expected to hold its top spot in the quarter, closely followed by Toyota Motor’s North America unit and Ford, said Cox Automotive.
Automakers launching more affordable feature-packed models also attracted some buyers looking to switch their older vehicles.
Cox Automotive, however, remained “concerned” over auto sales growth not being able to hold gains over the later part of the year due to uncertainties, including the US presidential election.
“New vehicle affordability concerns remain prevalent and inventories are not expected to advance as strongly as they have done over the past 12 months,” said Chris Hopson, an analyst at S&P Global Mobility. REUTERS
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