June U.S. LV Inventory Still Tight

U.S. new-car dealers had slightly more light-vehicle inventory at the end of June compared with the prior month – 2,164,772 units vs. 2,160,800 – but days’ supply, at 54 vs. 49, remained well below average.

For the most fuel-efficient segment, the news was even worse.

Kia and Hyundai in June had the lowest days’ supply of all brands for the second consecutive month.

Despite Japanese auto makers’ plants at home and abroad ramping up production at a quicker-than-expected pace following March’s natural disasters in Japan that crimped parts-supply lines, overall U.S. small-car inventory fell 5.0%, nearly 13,000 units, from May. Days’ supply tallied a weak 31, barely half what is considered normal.

Related document: Ward’s U.S. Light Vehicle Inventory by Group June 2011

Most Japanese brands saw inventory and days’ supply decline in June. Exceptions were Nissan, which increased stocks to 62 days’ from 49, and Lexus, rising to 45 from 34.

Surging Hyundai and Kia again tied for lowest days’ supply of all brands at 24, on par with May.

Cross/utility vehicle stocks dipped 2.1% from the prior month in June, but slower sales nudged the days’ supply to a still-below-normal 50 from 46.

On the other hand, there was no shortage of large SUVs. A 10.6% unit increase helped push days’ supply to a whopping 102, up from 82 on May 31, while overall SUV stock tallied 74 days’ compared with May’s 63.

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