The month of May has historically been a strong month when it comes to new vehicle sales. Unfortunately, it hasn’t been the last few years.
Between the COVID-19 pandemic and semiconductor shortages, May sales have been in the dumps. That was seen again after total sales in May 2022 came in even lower than April 2022 at just 140,725, according to DesRosiers Automotive Consultants.
“To be sure, the year over year drop of 8.5 per cent in May was ‘better’ than we have seen in the past few months, although it should be noted that May 2021 was an unusually weak month so a one-year comparable is less hopeful than it may first appear,’ said the consultancy’s report.
May was the top month for sales in eight out of 10 years between 2010 and 2019.
Managing partner Andrew King highlighted that May 2019 saw sales of more than 202,000. The current sales figure shows just how big the gap is between where we sit now and where numbers could be, he said.
The seasonally adjusted annual rate now sits at 1.36 million units, continuing a worrying trend that has seen the SAAR fall month after month, DesRosiers noted. The January SAAR was at 1.67 million. Indications are “that the market supply situation appears to be getting worse. As with the industry as a whole, we are still waiting anxiously for any signs of improvement, however tentative,” the group said.