(Reuters) – Auto industry consultants J.D. Power and LMC Automotive on Wednesday further cut their global light vehicle sales forecast for 2022, as lockdowns in China and the ongoing war in Ukraine hurt production.
The consultants now expect 2022 light vehicle sales of 80 million units, down from their earlier forecast of 81.7 million units.
Strict COVID-19 lockdowns in China have exacerbated supply chain disruptions and hurt auto production in one of the world’s biggest markets.
Auto part supplier Aptiv Plc warned earlier this month of a hit to its current-quarter earnings due to the lockdowns.
U.S. total new-vehicle sales for May, including retail and non-retail transactions, are projected to reach 1.2 million units, an 18% decrease from last year, the consultants said in a report.
Retail sales of new vehicles in the country are also expected to fall 20.9% but the average transaction price is anticipated to hit a May record at $44,832.
The seasonally adjusted annualized rate for total new-vehicle sales in the United States is expected to be 13.6 million units in May, down from 3.3 million units last year.
“As recovery is pushed out even further and consumers feel more of the effect of rising prices, lack of demand may become the issue once supply can catch up after 2023,” said Jeff Schuster, president of Americas operations and global vehicle forecasts at LMC Automotive.
(Reporting by Kannaki Deka in Bengaluru; Editing by Maju Samuel)