Why the recovery in new car sales will be uneven

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With the resumption of semiconductor supply, not all automakers will return to normal at a steady pace.

DesRosiers Automotive Consultants used the phrase “patchy and patchy” to describe the recovery from the shortage.

“As the semiconductor supply improves, it will not do so consistently across all manufacturers at a steady pace – but rather will be concentrated initially in certain OEMs, and will improve over time. -strokes rather than at a constant rate,” the group said in its announcement on New Vehicle Sales in July.

Sales of new vehicles last month showed this trend, he observed. While the overall market was weak, lurking behind some green shoots of supply improvement at a few companies.

DesRosiers called the market “depressingly weak” in July. Sales fell 16.2% to around 130,480 units. The majority of automakers are still struggling with disrupted semiconductor supply chains and the resulting empty dealership lots.

“This represents the lowest July sales total since 2001 and 24.8% below the 173,519 units sold in July 2019 before the pandemic,” said Andrew King, managing partner of DesRosiers. “The all-important SAAR for the month came in at 1.43 million – broadly in line with levels seen over the past quarter and still undeniably low.”

It also appears that Canadian vehicle buyers “still haven’t found what they’re looking for,” King added.

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