Last month showed a preliminary rebound in American car sales. And it looks like May will continue that trend. According to the advertising agency Universal McCann, the U.S. demand for vehicles will increase significantly by the end of this month.
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A predicted rebound for May
Photo: Mediamodifier via Pixabay
Per Reuters, the agency predicts that the nation’s demand for cars will reach 80 percent of pre-pandemic levels by June 1. Huw Griffiths, global chief product officer for Universal McCann, expressed surprise that this rebound is happening this early in light of the pandemic.
The agency based these predictions on machine learning models. These models took into account economic and health data as well as trending online search topics.
A shift toward private vehicle ownership
Universal McCann’s stats really aren’t too surprising considering the transportation shifts expected to occur in the wake of the COVID-19 outbreak. As stay-at-home orders start to lift, more people are planning on ditching public transit and using private vehicles more, as a recent IBM survey indicated. If car sales show a healthy surge by the end of May, it will likely result from Americans who are planning on returning to the workforce soon and who need a new vehicle for commutes.
Yet each state has its own timeline for gradually re-opening businesses. Some workers might not need to secure a new vehicle anytime soon if they’ll be working from home for another month or two. So, the May car sales figures might differ from state to state, even if the data shows an overall increase in car sales at the national level.
Universal McCann’s expected car sales surge brings some positive news this month. Though, we’ll have to wait a bit longer to see if this prediction holds true.
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Whitney Russell resides in Dayton, though her spirit can be found beach-bumming in Puerto Rico (the land of her half-Puerto Rican heritage). When not crafting car-related content, she can be found chasing after the most amazing toddler in the world, watching her “beaver” of a husband build amazing woodworking projects, hanging out with two crazy dogs, and visiting family and friends. She also enjoys traveling, crafting, and binge-watching period dramas when time allows. See more articles by Whitney.