Janice R. Andrews
According to a survey by automotive data provider S&P Global Mobility, U.S. new light vehicle sales are expected to rise by around 1% in July compared to the prior year. This projected expansion follows a notable dealer software breakdown in June, which probably caused some transactions to be postponed until July.
Dealer Software Outage Effects
An attack on CDK Global, a provider of technology to the automotive sector, last month is partially to blame for the increase in sales. In June, a crucial month for sales, the assault compelled the corporation to shut down a vital software system utilized by more than 15,000 vehicle dealerships in the United States. This forced a lot of dealerships—including big names in the industry like AutoNation, Hyundai, and Volkswagen—to switch back to manual documentation, which caused a disruption in regular sales operations.
Sales Figures and Patterns
Light vehicle sales in the United States are expected to increase from 1.29 million units to around 1.32 million units in July, according to S&P Global Mobility. Furthermore, it is anticipated that the market share of Battery Electric Vehicles (BEVs) would increase to 7.8% due to the launch of new models from producers including Stellantis, Volkswagen, and Honda.
“As a result of delayed transactions from the June auto dealer cyber attacks, even with one less selling day than June 2024, auto sales volume in July is expected to essentially match the month-prior result,” said Chris Hopson, an analyst at S&P Global Mobility.
Prospects for the Remainder of the Year
There are conflicting indications about how the car industry will function during the rest of the year, even with the optimistic sales forecast for July. Hopson emphasized worries about the availability of new cars and inventory levels, neither of which are predicted to increase as much as they did during the previous 12 months.
The automotive sector is still facing difficulties, but sales are holding up well in spite of these setbacks, suggesting that there is a strong market for new cars, especially electric ones. The industry’s recovery and further development depend on this growing tendency.
