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Industry Inventory Impact – March 2022

08 March 2022

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).

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Read our full US Automotive Advisory Insights from IHS Markit. Our March 2022 report on the US Market focuses on the profound impact inventory shortages are having on the automotive industry, including the widespread make loyalty decline.

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This article was published by S&P Global Mobility and not by S&P Global Ratings, which is a separately managed division of S&P Global.

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