U.S. auto gross sales will climb simply 3.4 p.c this 12 months to fifteen.4 million vehicles and vehicles because the semiconductor shortages proceed to constrain automobile stock, auto sellers predict.

The Nationwide Car Sellers Affiliation, representing 16,000 U.S. automotive retailers, mentioned the lingering chip scarcity slashed stock on seller heaps 59 p.c in December in comparison with a 12 months earlier. The group mentioned it expects inventories will stay diminished into the second half of 2022.

The dual crises of the pandemic and the semiconductor scarcity have taken a toll on U.S. auto gross sales, which totaled 14.93 million final 12 months, up 3.1 p.c from 2020, when lockdowns hit the economic system. Previous to the pandemic, the U.S. auto market had a five-year run of gross sales topping 17 million. The seller group mentioned stock is “slowly enhancing,” however famous the chip scarcity minimize international auto manufacturing 11.3 million autos.

“The coronavirus pandemic and ensuing microchip scarcity and manufacturing cuts considerably constrained new-car and truck stock at dealerships throughout the nation,” NADA chief economist Patrick Manzi mentioned in a press release. “Constraints additional led to suppressed new-vehicle gross sales, in addition to used-vehicle stock shortages and elevated automobile costs.”