Inventory at 3 million for first time since May

Inventory levels in the U.S. climbed back to 3 million vehicles to begin the month but still remain far below where they were a year ago, according to data compiled by the Automotive News Data Center.

The total supply hasn't been at or above 3 million vehicles since May, when production in the United States was just beginning to reopen after COVID-related shutdowns, according to Cox Automotive. The aggregate figure represents a 70-day supply at the most recent selling rate. Cox derives its analysis from vAuto Available Inventory data.

Increasing production levels have allowed inventory to rise about 130,000 vehicles from where it was at the beginning of December, when dealers had a 75-day supply, but stocks still remain about 590,000 vehicles below where they were at the same point a year ago, Cox says, when dealers had an 85-day supply.

While many automakers no longer report inventory data, among those that do, Subaru had the tightest supply at 29 days, while Toyota Motor North America had a 35-day supply. At 71 days, Honda was the only self-reporting automaker with a supply above 60 days, a level historically considered an industry norm.

Cox warned in a note that inventories could shrink again as an ongoing shortage of computer processing chips continues to disrupt automakers' production schedules.