(Reuters) - New vehicle sales in the United States are seen to rise in June, according to a joint forecast from J.D. Power and GlobalData, as automakers are able to push more stock to dealers to meet the growing demand for personal mobility and new models.
Total new-vehicle sales, including retail and non-retail transactions, in the U.S. are projected to reach 1,381,200 units in June 2023, a 22.6% increase over the year earlier.
"The industry will continue to benefit from the pent-up demand for new vehicles," Thomas King, president of the data and analytics division at J.D. Power, said in a statement on Friday.
That is evident from a 45% jump expected in retail inventories in June over the year earlier. Retail sales are likely to increase 16.6% in the month.
Sales to fleet customers are rising faster as manufacturers leverage higher vehicle production to allocate more units to them, the report said.
Prices of new vehicles are also expected to continue to rise, with consumers seen to spend $47.9 billion on new vehicles, up $6 billion from June 2022.
Total new-vehicle sales in the U.S. are estimated to reach 4.12 million units in the second quarter, up 18.2% from a year earlier.
"The increased vehicle supply and elevated interest rates have led to a decline in dealer profits— but those profits still exceed pre-pandemic levels," King added.
Globally, light-vehicle sales for June are projected to increase 4% from the year earlier, helped by growth in most markets barring China, where sales are expected to shrink 14%.