ARLINGTON, Va.—Total vehicle sales continue to decline, falling from 14.6 million annualized units to 13.1 million annualized units in August, with monthly sales levels down 14.4% year over year.
"Vehicle sales are getting crushed by the semiconductor shortage and subsequent lack of production," said NAFCU Chief Economist and Vice President of Research Curt Long. "The economy has the momentum and strength to support much higher sales, but there is no supply to meet it.
"J.D. Power reports that dealer inventories are just one-third their pre-pandemic levels," Long added. "The most profitable vehicles are getting the limited supply of chips, which also skews sales toward trucks and SUVs."
Car sales declined in August from 3.4 million annualized units to three million annualized units while light truck sales slipped to 10 million annualized units.
Total sales are down 14.4% from August 2019 and are at their lowest rate since June 2020. Light truck sales have hit their lowest level since May 2020.
"Production will remain an issue into early 2022, at which point sales will begin to strengthen again," concluded Long.