U.S. auto sales fell 12% in the first quarter despite strong demand as the industry contends with low inventories from the ongoing chip shortage, all the while bracing itself for the fall out from the conflict in Ukraine.

The numbers came in last Friday. Virtually every automaker reported a double-digit decline in sales. Year over year, Nissan (NSANY  ) saw sales dip by 30%, Honda (HMC  ), 23%, GM (HM  ), 20%, Toyota, 15% (TM  ), and Stellantis (STLA  ), 14%.

Most automakers cited the chip shortage and the overall lack of inventory as the chief reason for the decline, a view affirmed by many industry analysts.

"Skyrocketing gas prices were top of mind for consumers in March, but the lack of inventory is what ultimately depressed new vehicle sales in the first quarter," Jessica Caldwell, Edmunds' executive director of insights, told CNBC.

Thomas King, president of data for JD Power, told US News that March is typically a strong month for auto dealers. But that said dealers only had 900,000 vehicles on their lots, which ultimately hampered sales.

Still, JD Power noted that strong demand had pushed the average sales price to a record $44,129 in the first quarter. Data from Edmunds indicates that what few vehicles were on offer in the first quarter were being sold off quickly.

The average turnover for a gas-powered vehicle was 20 days last month, according to Edmunds, compared with 62 days a year ago. The trend holds true for electric vehicles, with your average EV spending 21 days on lot versus 63 days a year ago.

"While the global semiconductor chip shortage continues to create challenges, we saw improvement in March sales, as in-transit inventory improved 74% over February," said Andrew Frick, Ford's (F  ) vice president of sales, distribution, and trucks, in a statement.

Many automakers expect further improvements in sales, especially during the second half of the year, particularly in light of the strong demand on the consumer end.

"Improvements in the supply chain should lift auto sales as the year progresses, despite headwinds from higher inflation and fuel prices," said GM Chief Economist Elaine Buckberg in a statement.

Nevertheless, such expectations may overlook parts shortages that may spring out of the conflict in Ukraine. According to Wells Fargo (WFC  ), the stalwart Eastern European nation is a key supplier of wiring and wire harnesses, supplying some 10-15% of such components used by E.U. automakers. The conflict has already caused the S&P to slash its vehicle production estimates by 2.6 million for this year and the next.

Caldwell expects the battle for Ukraine will result in further part shortages, adding a further layer of complication to the ongoing chip shortage.

"This combination of headwinds could mean that these inventory issues will persist well into the rest of the year," she said.

Mark Fulthorpe, an executive director with S&P, expects that supplies of new vehicles will remain limited, and prices will remain high "well into 2023."

Fulthorpe contends that new car prices will percolate, rising along with inflation, eventually pricing average consumers out of the market. Demand eventually will level out, once prices reach a certain point.

But, "until inflationary pressures start to really erode consumer and business capabilities, it's probably going to mean that those who have the inclination to buy a new vehicle, they'll be prepared to pay top dollar," Fulthorpe told the Associated Press.