The pandemic disrupted manufacturing and supply chains around the world, forcing automakers to cut production way back. The resulting shortage of new cars, trucks and SUVs meant that automakers and dealers demanded – and got – much higher prices for the vehicles they were able to deliver.
Cox Automotive is forecasting U.S. new vehicle sales of 14.1 million in 2023, which Charlie Chesbrough, Cox's senior economist and senior director of industry insights, described as"tepidly optimistic." S&P Global Mobility expects new vehicle sales globally to reach nearly 83.6 million units in 2023, a 5.6% increase from the previous year. In the U.S., the data and consulting firm expects sales will be up by 7%, to about 14.8 million units in 2023.
"Ongoing supply chain challenges and recessionary fears will result in a cautious build-back for the market. US consumers are hunkering down, and recovery towards pre-pandemic vehicle demand levels feels like a hard sell. Inventory and incentive activity will be key barometers to gauge potential demand destruction," said Chris Hopson, manager of North American light vehicle sales forecast at S&P Global Mobility, in a statement.