Lower inventories played a key role in defining May's auto sales

The U.S. light vehicle sales rate dropped to 15.65 million units in May, down from 17.25 million in April and 17.83 million in March, according to Wards Intelligence data. This decline-the largest since the COVID-19 pandemic's onset in April 2020-was partially due to lower auto inventory levels from a March-April sales surge of shoppers trying to beat tariff-related price hikes. May also saw a 10% drop in incentive spending from April, as less inventory reduces dealers' need to offer discounts, rebates, and other special offers. Wards Intelligence forecasts that this sales dynamic will continue through June and into Q3, with automakers generally hesitant to ramp up production and replace inventory amid the ongoing trade wa

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