April U.S. Inventory in Line With Rising Demand

U.S. light-vehicle inventory ended April in solid shape, based on WardsAuto data.

Inventory totaled 3.27 million units, 19.5% above year-ago and a 1% gain on March, showing auto makers overall still are building to rising demand.

U.S. inventory levels generally fall from March to April, but the increase is not a red flag.

April’s days’ supply at month’s end of 64 is slightly below average for this time of year, indicating long-term demand is growing.

April’s days’ supply was slightly up from March’s 60 and well above year-ago’s 56, when manufacturers were desperately accelerating production, including major capacity increases, to meet a surge in demand that has continued into this year.

Car inventory stood at 1.550 million units on April 30, up 32.9% from year-ago and good for a 61 days’ supply. Light-truck inventory was 1.719 million, up 9.5%, and equated to 67 days’.

The days’ supply for both vehicle types are typical for April, although light trucks could be considered lean if demand continues to trend upward from the 4-month seasonally adjusted rate of 15.2 million units.

Inventory of domestically produced light vehicles totaled 1.125 million units for a 65 days’ supply. Volume was up 17.8% from year-ago, and a 1.1% increase from March. Inventory of imported vehicles was 642,000, up 26.6%, and less than 1% from prior-month. Import days’ supply was 60.

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