MENU
SEARCHTepid growth could signal an up-and-down year ahead, S&P says.
'Auto consumers continue to be impacted by an uncertain purchase environment,' an S&P analyst said.
IMAGE: Pexels/Erik McIean
At least one forecaster sees January vehicle sales boding a volatile year in the industry but growth nonetheless.
A preliminary projection by S&P Global Mobility puts new-vehicle sales for the month at 1.09 million for a seasonally adjusted annual rate of 15.2 million.
That’s up slightly year-over-year from about 1.05 million and 15.1 million as S&P expects steady but moderate growth in light-vehicle sales, though it sees the potential for a rollercoaster market.
One market booster it forecasts is increased production after the autumn strikes leading to greater levels of inventory and incentives, which it said could bring more consumers to the dealership who’ve so far stayed on the sidelines due to high interest rates.
New-vehicle inventory at dealerships was about flat in December at 2.45 million units but up 53% year-over-year. The supply translated to an average advertised discount of $3,030, up about 11% month-over-month, S&P said.
The mixed 2024 forecast bag in the end should nevertheless bring modest sales growth of 3% to 15.94 million as interest rates stay high and “economic headwinds remain,” said Principal Analyst Chris Hopson in the forecast.
"Auto consumers continue to be impacted by an uncertain purchase environment,” he said.
"A volatile purchase environment for auto consumers will continue to dictate monthly sales levels."
LEARN MORE: Used-Vehicle Market Still Feeling Covid
Originally posted on Auto Dealer Today
First-quarter auto sales increased as more consumers took advantage of government incentives. Hybrid deliveries are leading the way on the electrifieds boom.
Read More →
At nearly 14%, California had the lowest zero-emission vehicle market share in the first quarter since the fourth quarter of 2021, according to the California New Car Dealers Association.
Read More →
EREVs, also known as ‘series hybrids,’ may catch on in the U.S., where they currently have barely a toehold, as automakers tilt away from some purely electric models and consumers crave more range.
Read More →
Hybrids in particular lead not only EV market share but all power trains on the continent so far this year as gas and diesel continue their decline.
Read More →
Building on a previously announced $26 billion U.S. investment, Hyundai said it will grow its North American lineup and U.S.-based production and parts sourcing.
Read More →
Sony-Honda venture cancels two planned models, the first of which had been pegged for a mid-2026 California delivery debut. The brand’s direct sales had been challenged by the state’s auto dealers, but the venture cites Honda’s EV retreat.
Read More →
Softening prices, rising credit availability and higher tax refunds could be behind February’s sales pace rise and accompanying dip in inventory, according to Cox Automotive.
Read More →
The wholesale automotive market fared remarkably well given the U.S.-Israel war on Iran, Black Book analysts reported.
Read More →
The agency sent warning letters to dozens of auto groups about what it described as illegal practices and urged them to ensure their pricing policies enable transparency with consumers.
Read More →
New-vehicle sales fell year-over-year for the fifth month in a row in February, making retail deliveries the slowest they’ve been since 2023, according to a CarGurus report.
Read More →