US Auto Market Insights - March 2022

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Industry Inventory Impact

Inventory shortages are having a profound impact on the industry

After the disruption from the COVID-19 pandemic in 2020, the current microchip shortage impact on vehicle production and inventory shortages have hampered sales for almost all brands.

Make loyalty decline was widespread

As consumers returned to market with limited choices, fewer were loyal to their brand. There is a strong positive correlation between days' supply and make loyalty (Fig. 1).

The March 2022 Automotive Advisory Insights from S&P Global focuses on the profound impact inventory shortages are having on the automotive industry, including the widespread make loyalty decline.

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