U.S. auto retail sales expected to hit record high in April

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U.S. auto retail sales expected to hit record high in April

Cars for sale are seen at Serramonte Ford in Colma, California.

The US auto retail sales for April are expected to be the highest ever recorded for the month, supported by strong consumer demand and tighter inventories at dealers, industry consultants J.D. On Wednesday, Power and LMC Automotive said

Retail sales for new vehicles are forecast to reach 1.3 million units in April, up by 110.6% over the same period last year, said the statement.

Total auto sales for April, including retail and non-retail, are projected to reach 1.5 million units, a 107.1% increase compared to the same period in 2020.

With the sale pace exceeding the rate at which vehicles are being produced, compounded by significant supply disruption due to microchip shortages, there is a growing risk to the industry's ability to sustain the current sales pace in the coming months, said Thomas King, president of data and analytics division at J.D.J.D. Power.

Average transaction prices are expected to decline 6.8% to $37,572, the highest ever for April, while the average incentive spending per unit is expected to fall from $4,953 last year to $3,191.

King said the low inventories have enabled manufacturers and retailers to reduce prices, and consumers were willing to buy vehicles closer to the manufacturer's suggested retail price and more expensive vehicles.

The total seasonally adjusted annualized rate for the month will be 16.4 million vehicles, while it was 18.1 million units in 2019, the report said.

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