Jun 2023

Rising Incentives Increase May Sales

A sharp rise in incentives at some brands amid the industry’s ongoing inventory recovery fueled a jump in U.S. light-vehicle sales last month. Deliveries rose 21% to around 720,000 vehicles for the seven automakers that report monthly figures. American Honda was among the big winners, notching a 58% gain, while Subaru of America posted a 28% increase.

May marked the industry’s 10th consecutive monthly sales increase, according to LMC Automotive, as it continues to bounce back from supply chain challenges that dogged automakers last year. The latest results were helped by favorable year-earlier comparisons, when the inventory shortage was at its worst. Retail inventory entered June at around 1.3 million vehicles, up 48% from a year earlier, according to estimates from J.D. Power and LMC Automotive.

TrueCar estimated incentives averaged $1,931 last month, up 13% over April and 64% over May 2022.