Unusually high inventories may lead to stronger than expected US auto sales, says report
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A decrease in auto sales during August in the U.S. market––when most analysts expected a 1% rise––might have played in favor of the auto industry overall, leading to the possibility of total 2018 sales hitting 17 million units for a fourth year in a row, WardsAuto reported.
According to the automotive news and analysis site, the rebound failed to materialize in August due to automakers decision to put on hold heavier incentives, which would have helped to clear 2018 year model inventories in order to make room for the arrival of the 2019 vehicles, which are scheduled to take place in October.
“The consequence was an atypical rise in inventory from July to August, increasing the chances that September sales spike upward with the industry moving to pare unwanted stocks,” WardsAuto reveals, adding that its Intelligence unit is lifting its year-end sales projection to 16.9 million units, “but with a good chance” of reaching the 17-million milestone.
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