Honda Tops Inventory Efficiencies

As inventories revive but still fall well short of historic norms, three carmakers are trading places month to month on supply and demand efficiency, a new ranking shows.

The Inventory Efficiency Index by data provider Cloud Theory puts Honda as the best efficiency player in July, scoring 202.8, meaning it sold its inventory much more efficiently than the average for the month, a 13.8 point increase over its June result.

Kia came in second and Toyota third on the index ranking at 194.9 and 187, respectively. The three brands were in a tight race in June, separated by less than two points, and have been trading places on the list this year. Cloud Theory analysts expect them to continue to do so for the rest of the year, based on recent results and shifting supply-and-demand trends.

“Understanding a brand’s relative efficiency position on a regional basis is crucial to making smart advertising, incentive, and vehicle allocation decisions,” said Cloud Theory Chief Revenue Officer Ron Boe. Identifying locations that have supply/demand imbalances is key to taking appropriate actions to ensure that money is spent where it is most needed,”

Cadillac has been rising through the second tier of the ranking from 13^th place as the year started, Cloud Theory says. It’s now in sixth place after surpassing BMW’s numbers.

DIG DEEPER: Inventories Dipped for 4th But Bounced Back Fast

Originally posted on Auto Dealer Today