Stellantis’ second-quarter U.S. new vehicle sales increased by 6.4% compared to the previous year, driven by higher sales of the Chrysler Pacifica minivan and Jeep Compass and Dodge Durango SUVs.

While Stellantis’ sales increase is expected to be one of the lowest in the second quarter, it reflects the continued strong demand for new vehicles as inventories improve and supply chain issues resolve.

The rise in sales signals a rebound in demand for new vehicles, with inventories recovering from historically low levels during the COVID-19 pandemic and supply chain disruptions.

According to industry forecasters, the auto industry as a whole is projected to see sales increase by 16% to 18% in the second quarter compared to the previous year.

Jeff Kommor, Stellantis’ U.S. head of sales, commented, “We saw increased demand this quarter as market conditions continue to improve and our dealer network makes the necessary adjustments to drive sales growth across our brand portfolios.”

Following the announcement, Stellantis’ shares rose by approximately 1.5%.

The Dodge Durango witnessed a threefold increase in sales compared to the subdued results of the second quarter of 2022. Additionally, the Pacifica minivan experienced a 40% jump in sales, while the Jeep Compass saw a 28% increase. However, most of the company’s other vehicles faced sales declines year-over-year.

Stellantis reported sales of 434,648 vehicles in the second quarter, up from 408,521 in the same period last year.

Cox Automotive recently raised its full-year new vehicle sales forecast for the broader industry to 15 million, an 8% increase from 2022. This is due to improved inventory levels and inflated transaction prices in the previous year.

Stellantis’ results follow other legacy automakers reporting sales increases in the second quarter, as well as electric vehicle makers Tesla and Rivian surpassing analyst expectations for quarterly deliveries.

Honda Motor and Nissan Motor reported double-digit sales growth of approximately 45% and 33% respectively in the second quarter compared to the previous year. Hyundai Motor also announced a 14% increase in sales for April through June compared to the same period last year.

General Motors and Ford Motor are expected to release their second-quarter sales figures later this week.