The squeeze is down to a strong recovery in vehicle sales at the same time that production output is being hit by the current semiconductor supply shortage, expected to last into next year.

That combination of strong demand and low inventory is driving up sales prices, which are now 3.8% above 2020 and 7.9% more than 2019, according to the analyst.

Taking inventory data from its subsidiary vAuto, Cox Automotive reported that the market has 44 days of supply as a national average, the lowest since October 2020. That figure compares to 59 days near the end of March.

The current figure is 52% down on 2019 levels and 75% down on the same period last year, when sales were hit by the coronavirus pandemic and stock was sitting on lots.

Cox Automotive bases its days of supply figures on the daily sales rate for the most recent 30-day period. According to the analyst, sales in April started strong before slowing mid-month.

However, toward the end of April, they “picked up to a blistering pace” and the month ended with 1.5 million vehicles sold, up 111% from COVID-hit April 2020. That put the seasonally adjusted annual rate of sales (SAAR) at 18.5 million, the highest for the month since records began in 1976, according to Cox.

“The industry is in uncharted territory by trying to maintain robust sales with this low level of inventory,” said Charlie Chesbrough, Cox Automotive senior economist. “Supply was down significantly, yet April sales finished at an 18.5-million seasonal pace. So, limited stock does not…