American supply of unsold vehicle declined to 2.26mn units in August this year compared to 2.33mn units in the previous month and 3.13mn units in August last year, according to an analytical report by Cox Automotive.
This has led to the total days of supply to reduce to 58 days from 62 days in the end of July and 74 days in August 2019. That said, new vehicles sales fell by 19pc in August 2020 from the same month last year, the company reported.
In luxury vehicles, days of supply fell to 56 days in August from 65 days in end of July 2020 and 79 days in June 2020. While the sales in the luxury segment has not picked up as well as the non-luxury segment, gradual growth has been noticed.
Days of supply in the non-luxury segment has also decreased to 58 days in August from 62 days in end of July and 68 days in the end of August with pick up trucks facing the biggest shortages in supply.
As the 2021 models are expected to roll out soon, the manufacturing pace has been slow with only 2.5pc 2021 models in the existing inventory currently. Comparing to the same period last year, 19pc of the vehicle inventories were new year models. This is mainly because of delays in production at the manufacturing plants.