US auto sales set to rise in November amid steeper discounts, report shows
10:02 am Wednesday, November 27th, 2024
(Reuters) – New vehicle sales in the U.S. are projected to have risen 6.7% in November from a year earlier, driven by higher discounts to clear elevated inventory, according to a joint report by industry consultants J.D. Power and GlobalData on Wednesday.
WHY IT’S IMPORTANT
Although sticky inflation and high interest rates have dented demand, lower price tags have helped lift volumes at some automakers.
U.S. automakers are grappling with intense competition from Chinese brands abroad and face the threat of tariffs under President-elect Donald Trump’s incoming administration.
BY THE NUMBERS
Seasonally adjusted annualized rate for total new-vehicle sales is expected to rise 1.2 million units to 16.5 million units in November from a year earlier.
Retail inventory is projected to rise 29.7% to 2.1 million units, compared to November 2023.
Total retailer profit per unit, a metric which tracks gross income from vehicle sales including finance and insurance, is expected to fall 21.2% in the month.
KEY QUOTES
“Gradual improvements in more affordable vehicle availability are likely to sustain the momentum of new-vehicle sales, while transaction prices and profitability are projected to moderate slightly,” said Thomas King, president of the data and analytics division at J.D. Power
“Despite challenges such as stubbornly high interest rates and declining used vehicle values, the overall health of the new-vehicle market remains strong.”
“There continues to be a level of risk with vehicle demand in the fourth quarter, but the increase in October has eased some of the concern,” said Jeff Schuster, vice president of research, automotive at GlobalData, referring to the global sales forecast.
(Reporting by Utkarsh Shetti in Bengaluru; Editing by Sriraj Kalluvila)
