Monthly inventory/sales ratio in the U.S. auto industry 2009-2024
In September 2024, the U.S. automotive industry's inventory-to-sales ratio decreased compared to August 2024, reaching 1.27. This was however a slight uptick compared to the levels recorded in 2022, when the global chip shortage depleted automotive dealerships' car supply.
Chip shortage impacts supply
The inventory/sales ratio reported in February 2022 was a record low for the United States' automotive sector, lower than the ratio one month earlier, in January 2022. The ratio slumped when U.S. vehicle sales began to gain steam and supply remained low amid shortages of automotive parts, most notably microchips. In contrast, the inventory-to-sales level rose to its highest in January 2009 amid the 2008/09 financial crisis, reaching about 4.6.
High demand but low consumer satisfaction
The impact of the shortage is not just felt by dealerships but also impacts consumers' car buying experience. Around 48 percent of U.S. consumers intended to buy a car as of September 2024, a share which remained stable compared to survey results gathered from October 2021 to September 2022. Some of the most in demand brands in the United States maintained relatively low days of supply values, indicative of potential issues for consumers looking to acquire a popular model.
