(May 30, 2023) Total new-vehicle sales for May, including retail and non-retail transactions, are projected to reach 1,337,700 units, a 15.6% increase from May 2022, according to a joint forecast from J.D. Power and LMC Automotive. May has 25 selling days, one more than May 2022. Comparing the same sales volume without adjusting for the number of selling days translates to an increase of 20.4% from 2022.

New-vehicle retail sales for May are expected to increase when compared with May 2022. Retail sales of new vehicles this month are expected to reach 1,079,200 units, a 9.6% increase from May 2022. Comparing the sales volume without adjusting for the number of selling days translates to an increase of 14.2% from 2022.

Thomas King, president of the data and analytics division at J.D. Power:
“The industry is positioned for another strong month in May as retail sales are estimated to surge 9.6% from a year ago. This positive performance is complemented by a projected 0.7% increase in average transaction prices. As a result, it is anticipated that consumers will spend nearly $47 billion on the purchase of new vehicles in May, showcasing a significant 13% growth from a year ago," said Thomas King, president of the data and analytics division at J.D. Power.

"Retail inventory levels in May are expected to finish at approximately 1.3 million units, remaining consistent with April’s level. However, this represents a substantial increase of 48% compared with May 2022. The improvement in vehicle availability has led to decreased dealer margins and increased manufacturer incentive spending in that same period. However, both metrics are relatively stable when compared with the previous month. The performance of the retail market continues to demonstrate robust demand for vehicles, augmented by consumers who have delayed purchases due to low inventory.

“Manufacturers continue to leverage increased vehicle production to allocate more vehicles to fleet customers. Fleet sales are projected to increase 50% from May 2022.”

New-vehicle transaction prices continue to rise, with the average price reaching a May record of $45,838. This is a 0.7% increase from a year ago. The record transaction prices means that consumers are on track to spend nearly $46.9 billion on new vehicles this month — the second highest for the month of May and 13% higher than May 2022.