Ford Motor Co.'s U.S. sales rebounded sharply in July for the second straight month while the slump at Toyota Motor Corp. and Honda Motor Co. reached a year and deliveries at Hyundai and Kia fell for the fifth-straight month, as microchip shortages and stretched supply lines continue to undercut light-vehicle output and shipments.
The broader U.S. market fell 12 percent last month, LMC Automotive said Wednesday, within the range of forecasts for a 9.2 to 13 percent decline, based on estimates from LMC Automotive, J.D. Power, Cox Automotive and TrueCar.
July marked the 12th consecutive month that volume has dropped year over year.
Retail sales remained under 1 million units for the third consecutive month in July, LMC said. The seasonally adjusted annualized rate of sales in July came in at 13.5 million, Motor Intelligence said, down sharply from 14.81 million in July 2021 and slightly higher than June's 13.22 million rate.
Morgan Stanley estimated the retail SAAR in July at 11.8 mliion, down from 12.7 million a year earlier.
The SAAR has managed to top 15 million only once — 15.23 million in January — since June 2021.
"The U.S. auto industry continues to feature mixed and conflicting signals on the cycle," Morgan Stanley analyst Adam Jonas said. "Inflation appears to be impacting demand with low-income consumers, while a lack of supply is keeping price and mix extraordinarily strong."
LMC, citing a sales pace that is holding around 13.7 million units though July, reduced its 2022 U.S. light-vehicle outlook again, to 14 million, from 14.3 million just last month. The latest cut "reflects the intersection of continued supply constraints and demand that is expected to weaken as inflation and rising interest rates take hold," LMC said, adding "uncertainty is elevated through the end of the year and into 2023."