U.S. sales at Hyundai and Kia dropped by double digits a second-straight month in April compared with a year earlier, when industry volume soared, as key parts shortages and jammed supply lines continue to undermine light-vehicle output and shipments.

Deliveries fell 20 percent at Hyundai and 16 percent at Kia last month, mostly on weaker car sales.

With an expanded crossover linuep, its first pickup and the new Ioniq 5 electric vehicle, Hyundai has focused on retail sales, which tallied 61,668 last month. The company reported zero fleet deliveries in April for the fourth  month.

At Genesis, April volume rose 53 percent to 5,039, a monthly record, and the brand’s 17th straight increase. The brand’s two crossovers, the GV70 and GV80, each outsold combined deliveries of the brand’s three sedans.

U.S. new-vehicle sales are expected to fall around 20 percent in April, analysts predict, as automakers struggle to rebuild depleted dealer inventories amid a chronic microchip shortage and other supply chain hurdles.

Toyota Motor Corp., Honda Motor Co., Mazda and Subaru are expected to report April sales later Tuesday. Ford Motor Co. and Volvo will release results Wednesday.

Overall, retail sales could fall 24 percent to 1.1 million vehicles in April from a year earlier, LMC and J.D. Power estimate.

The seasonally adjusted annualized rate of sales is expected to tally 14.3 million to 14.8 million in April, LMC, J.D. Power, Cox Automotive and TrueCar estimate, well below the torrid 18.5 million pace set in April 2021, but higher than March’s 13.4 million pace.

Except for January, the SAAR has been stuck below 15 million since July.

U.S. dealers had fewer than 900,000 new cars and light trucks in inventory last month, J.D. Power said. Kia, Honda, Toyota, Land Rover, Lexus and Subaru are among the brands with the lowest inventory, while Chrysler, Audi, Ram, Lincoln and Dodge have some of the highest stockpiles, according to Cox Automotive.

In addition to parts shortages, tightened security and screening along the Texas-Mexico border has resulted in shipping delays. And government-ordered COVID-19 lockdowns in China have slowed the production of auto parts and vehicles exported to the U.S.

Honda Motor Co., which warned in early April that parts supplies continue to fluctuate, has been forced to reduce new-vehicle allotments in May and June for some U.S. dealers.

The lingering inventory crunch has led analysts and automakers to cut forecasts for U.S. auto sales in 2022 to around 15.3 million to 15.5 million, from as high as 16.5 million in initial estimates.

“The situation on the ground has not changed significantly for months. Product availability remains constrained, and many customers can only order their vehicles for future delivery,” Cox Automotive Senior Economist Charlie Chesbrough said. “Improved inventory conditions will likely not happen in 2022, as many customers are now waiting for their already reserved vehicles to be built.”

The average incentive per new vehicle was on pace to reach an all-time low of $1,034 last month, a decrease of 66 percent from April 2021, J.D. Power said. Incentive spending per vehicle expressed as a percentage of the average sticker price was also trending toward an all-time low of 2.3 percent, down 4.8 percentage points from April 2021 and making for the third consecutive month below 3 percent, J.D. Power and LMC said.

TrueCar estimates average incentives dropped 55 percent to $1,466 in April, with four brands — Toyota, Hyundai, Kia and Subaru — with discounts well below $1,000.

With lean inventories and consumer demand high, the average transaction price for a new vehicle is expected to reach an April record of $45,232, up 19 percent from a year earlier and the second-highest level since a peak of $45,247 in December, LMC and J.D. Power said.

  • There were 27 selling days last month vs. 26 in April 2021.
  • April fleet sales are expected to fall 24 percent from a year earlier but increase 19 percent from March, when adjusted for the same number of selling days, TrueCar estimates.
  • Leasing will account for just 18 percent of retail sales in April, J.D. Power and LMC said, down from 30 percent of all new-vehicle retail volume in all of 2019.
  • The average interest rate on a new-vehicle loan was 4.8 percent in April, up from 4.6 percent in March, TrueCar said.
  • The average term on a new-vehicle loan was 70 months in April 2022, according to TrueCar.