J.D. Power and LMC Automotive, two consultant firms in the auto industry, have both lowered their worldwide light vehicle sales projection for 2022, citing lockdowns in China as well as the ongoing conflict in Ukraine as the factors that has impacted auto manufacturing in the sectorsecin.
The consultants now foresee 80 million light vehicle sales for the entire of 2022, which is lower than the 81.7 million units sale that the firms had previously predicted.
Strict COVID- 19 Chinese lockdowns have worsened supply chain disruptions and harmed vehicle production in one of the world’s most important marketplaces.
Aptiv Plc, an auto parts supplier, warned earlier this month that the lockdowns would hurt its current-quarter profitability.
According to the experts, overall new-vehicle sales in the United States for May, including retail and non-retail transactions, are expected to hit 1.2 million vehicles, down 18% from last year.
New car retail sales are forecast to drop 20.9 percent across the country, but the average transaction price is expected to hit a new high of $44,832 in May.
In May, the seasonally adjusted annualised rate of total new vehicle sales in the United States is estimated to be 13.6 million units, down from 3.3 million units the previous month.
“As recovery is pushed out even further and consumers feel more of the effect of rising prices, lack of demand may become the issue once supply can catch up after 2023,” said Jeff Schuster, president of Americas operations and global vehicle forecasts at LMC Automotive.
(Adapted from USNews.com)