Sales of new vehicles in the United States could fall as a result

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Sales of new US vehicles could fall in March, hitting the weakest volume in the first quarter of a decade as chip shortages and the crisis in Ukraine cut stocks, research firm Cox Automotive was quoted as saying by Reuters. .

The volume is expected to fall by more than 24% to about 1.22 million units in March and by more than 16% in the first quarter.

“Don’t be fooled, this market is locked to a low volume,” said Charlie Chesbrough, senior economist at Cox Automotive, adding that sales will remain at current levels until supply improves.

The new restrictions on Covid-19 in China, as well as Russia’s invasion of Ukraine, have brought back supply disruptions that have been lifted in recent months.

Despite strong demand, Cox Automotive expects the seasonally adjusted annual sales rate this month to be about 13.1 million, significantly lower than the 17.6 million last March.

Light vehicle sales in the US could reach 15.3 million this year, down 700,000 units from the initial January forecast, the statement said.