U.S. vehicle sales by type and month 2023

At just under 1.07 million unit sales, light trucks remained the largest U.S. auto market segment in May 2023, down from over 1.07 unit sales in April 2023 and increasing by approximately 23.06 percent year-on-year. The U.S. auto market ended 2021 on a low note: The global automotive semiconductor shortage hit the industry, depleting vehicle supplies and sales in the second half of the year. While sales seemed to pick back up in December 2022, the industry still faces supply chain challenges which impact vehicle availability, and overall price inflation has been disrupting demand.

Global chip shortage affects supply

The second quarter of 2020 saw a significant drop in automotive sales volume compared to the year before. Most of the disruption was seen in May, before restrictions to curtail the coronavirus pandemic were lifted. Sales showed signs of recovery in the following months, before dropping again in 2021. The industry’s inventory-to-sales ratio nosedived in April 2020, and has not recovered since. Supply issues were not felt as strongly across the automotive sector, while car demand was low due to national lockdowns brought on by the pandemic. However, as consumers’ purchasing intentions picked up, vehicle stocks could not meet the new demand due to chip shortages, which led to production halts and cuts.

U.S. vehicle sales gain momentum thanks to light truck sales

As the year 2020 came to an end, motor vehicle sales in the United States finished on a high note. Following the Covid-19 disruption, the U.S. auto sector began to recover in the third quarter. However, the semiconductor shortage and global inflation further impacted sales in 2021 and 2022. U.S. motor vehicle sales dropped to just under 13.8 million in 2022, partly as light truck retail sales decreased that same year.