Investing.com -- US light vehicle sales reached 16.5 million units on a seasonally adjusted annual rate basis in June, marking the fourth consecutive month above 16.0 million, according to a report from Citi.

June sales increased 2.9% on a daily selling rate basis, with 25 selling days compared to 24 in the prior year period. Second quarter sales totaled 4.2 million units, up 0.5% and representing the highest second quarter comparison since 2021.

Year-to-date sales were down 2.8% through June. Citi projects full-year 2026 US light vehicle sales of 16.15 million units, which assumes a 1.5% increase in the second half of the year.

The June results benefited from easier year-over-year comparisons. Tariff-related pre-buying pushed the seasonally adjusted annual rate above 17 million units in March and April of 2025, creating favorable comparisons for May and June of this year.

US light vehicle dealer inventory has remained between 2.5 million and 3.0 million units since the beginning of 2024. This level is approximately 1.0 million units below the comparable pre-Covid average. The combination of steady demand and inventory discipline has supported positive pricing and record industry revenue, Citi noted.

The bank estimates trend demand levels at 16.5 million to 17.0 million units annually over the next five to ten years, supported by the replacement of the oldest fleet on record and the largest increase in licensed drivers in over 40 years.

General Motors and Ford have both shifted priorities from lower margin small and mid-sized cars to more expensive and profitable light trucks. Both companies maintain a double-digit price premium to the overall market and have gained revenue share over the last four years, with additional gains expected this year, according to Citi.