2023-12-21 15:48:51
U.S. new vehicle sales are expected to rise about 13% in December from a year earlier, driven by deep discounts and vehicle availability, consultants JD Power and GlobalData said in a joint report. published Thursday. Total new vehicle sales, which include both retail and non-retail transactions, are expected to reach around 1,396,700 units in December, an increase of 13.2% from a year earlier, according to the report.
The automotive industry is expected to have a boom year, as total sales stood at just under 15.5 million units, a significant increase of 12.8% over last year’s sales, according to The report.
Inventory levels are currently the highest since early spring 2021, leaving dealers and automakers scrambling to make room for the new models, which are expected to arrive en masse by January.
Car dealers are offering generous incentives and rebates during winter sales, in an effort to clear inventory of older vehicles and take advantage of sustained demand.
The report estimates that per-unit incentive spending will reach $2,458 during the month, up from $1,289 last year, encouraging consumers to spend an estimated $50.4 billion on new vehicles, an increase of $2.4 billion.
“December sales growth is driven by improved vehicle availability and affordability,” said Thomas King, president of JD Power’s data and analytics division.
However, the increased supply of new vehicles and rising interest rates are resulting in lower profits per unit for dealers, although these profits continue to exceed pre-pandemic levels, the report adds. .
The average transaction price (ATP) in the United States for new vehicles in December is expected to be $46,055. It was $47,362 for the same period in 2022.
The report projects that global demand will increase by 3%, reaching 92.3 million units in 2024. (Reporting by Pratyush Thakur in Bengaluru; Editing by Pooja Desai)
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