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US Vehicle Sales in Q1 Display Continued Demand Momentum
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U.S. new vehicle sales is expected to have risen 5.6% year over year to 3.8 million units volume in the first quarter of 2024, per Cox Automotive. March's seasonally adjusted annual rate is anticipated to reach 15.5 million units, suggesting a 0.6 million increase from last year's reported figure.
Per J.D. Power and GlobalData, in March, light-vehicle retail inventory reached 1.7 million, up 4.2% from February 2024 and 39% from March 2023. Total inventory surpassed 2.5 million for the first time since 2021. J.D. Power expects the average transaction prices of vehicles in March to decline 3.6% year over year to $44,186. Buoyed by improved inventory and better pricing, demand continues to witness an upward trajectory.
Most global auto giants have reported impressive U.S. sales results in the first quarter of 2024. Sales of Toyota (TM - Free Report) , Honda (HMC - Free Report) , Volkswagen (VWAGY - Free Report) and Nissan (NSANY - Free Report) have seen significant year-over-year improvements. However, industry leader General Motors (GM - Free Report) has recorded a slight decline in the sales volume.
Here’s a peek into auto giants’ U.S. sales in first-quarter 2024.
General Motors: The auto giant delivered 594,233 vehicles in the first quarter of 2024, representing a 1.5% year-over-year decline due to lower fleet deliveries. The phase-out of Chevrolet Bolt EV is also expected to have adversely impacted GM’s sales. However, the legendary automaker reported a 6% year-over-year rise in retail sales. Year-over-year retail sales of GM brands Buick, Chevrolet, Cadillac and GMC rose 10%, 6%, 9% and 3%, respectively, while that of GM envolve declined 23%.
Toyota: This Japan-based automaker delivered 565,098 vehicles, rising 20.3% from the year-ago period. The automaker sold 206,850 units of electric vehicles (EVs) in the same period. EV sales rose 74% year over year and contributed 36.6% to the company’s total sales volume. In the first quarter of 2024, sales of Toyota division and Lexus rose 21.3% and 15%, respectively, from the year-ago quarter.
Honda: The company sold 333,824 units, up 17.3% year over year. Sales of Acura and Honda brands were down 9.2% and up 20.9% year over year, respectively. The automaker sold 61,915 units of EVs, representing an uptick of 25.5% from the corresponding quarter of 2023.
Nissan: This Japanese automaker saw its first-quarter vehicle sales in the United States rise 7.2% year over year to 252,735 units. Sales of the Nissan division rose 8.5%, while that of the Infiniti division tumbled 11.8%. The company’s total car and truck sales increased 20.9% and 1.8%, respectively.
Volkswagen: The Germany-based auto giant sold 82,101 vehicles in the first quarter of 2024, up 21% year over year. Jetta, Atlas, Atlas Cross Sport, GTI and Golf saw strong sales growth of 185%, 43%, 31%, 156% and 125%, respectively, from the corresponding quarter of 2023.
Trade-Off Between Sales and Profitability
Per Thomas King, president of the data and analytics division at J.D. Power, automakers are dealing with rising inventories of unsold vehicles and tough competition, which may impede them from translating higher sales into higher profitability.
What Lies Ahead?
Per S&P Global Mobility, despite challenges like high interest rates and tight credit, U.S. vehicle sales are forecast to rise to 15.9 million units in 2024, suggesting a 2% rise from 2023 levels.
Even though the auto industry is experiencing lower-than-expected demand for EVs, rising options for battery electric vehicles are expected to attract more buyers.
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US Vehicle Sales in Q1 Display Continued Demand Momentum
U.S. new vehicle sales is expected to have risen 5.6% year over year to 3.8 million units volume in the first quarter of 2024, per Cox Automotive. March's seasonally adjusted annual rate is anticipated to reach 15.5 million units, suggesting a 0.6 million increase from last year's reported figure.
Per J.D. Power and GlobalData, in March, light-vehicle retail inventory reached 1.7 million, up 4.2% from February 2024 and 39% from March 2023. Total inventory surpassed 2.5 million for the first time since 2021. J.D. Power expects the average transaction prices of vehicles in March to decline 3.6% year over year to $44,186. Buoyed by improved inventory and better pricing, demand continues to witness an upward trajectory.
Most global auto giants have reported impressive U.S. sales results in the first quarter of 2024. Sales of Toyota (TM - Free Report) , Honda (HMC - Free Report) , Volkswagen (VWAGY - Free Report) and Nissan (NSANY - Free Report) have seen significant year-over-year improvements. However, industry leader General Motors (GM - Free Report) has recorded a slight decline in the sales volume.
Here’s a peek into auto giants’ U.S. sales in first-quarter 2024.
General Motors: The auto giant delivered 594,233 vehicles in the first quarter of 2024, representing a 1.5% year-over-year decline due to lower fleet deliveries. The phase-out of Chevrolet Bolt EV is also expected to have adversely impacted GM’s sales. However, the legendary automaker reported a 6% year-over-year rise in retail sales. Year-over-year retail sales of GM brands Buick, Chevrolet, Cadillac and GMC rose 10%, 6%, 9% and 3%, respectively, while that of GM envolve declined 23%.
General Motors currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Toyota: This Japan-based automaker delivered 565,098 vehicles, rising 20.3% from the year-ago period. The automaker sold 206,850 units of electric vehicles (EVs) in the same period. EV sales rose 74% year over year and contributed 36.6% to the company’s total sales volume. In the first quarter of 2024, sales of Toyota division and Lexus rose 21.3% and 15%, respectively, from the year-ago quarter.
Honda: The company sold 333,824 units, up 17.3% year over year. Sales of Acura and Honda brands were down 9.2% and up 20.9% year over year, respectively. The automaker sold 61,915 units of EVs, representing an uptick of 25.5% from the corresponding quarter of 2023.
Nissan: This Japanese automaker saw its first-quarter vehicle sales in the United States rise 7.2% year over year to 252,735 units. Sales of the Nissan division rose 8.5%, while that of the Infiniti division tumbled 11.8%. The company’s total car and truck sales increased 20.9% and 1.8%, respectively.
Volkswagen: The Germany-based auto giant sold 82,101 vehicles in the first quarter of 2024, up 21% year over year. Jetta, Atlas, Atlas Cross Sport, GTI and Golf saw strong sales growth of 185%, 43%, 31%, 156% and 125%, respectively, from the corresponding quarter of 2023.
Trade-Off Between Sales and Profitability
Per Thomas King, president of the data and analytics division at J.D. Power, automakers are dealing with rising inventories of unsold vehicles and tough competition, which may impede them from translating higher sales into higher profitability.
What Lies Ahead?
Per S&P Global Mobility, despite challenges like high interest rates and tight credit, U.S. vehicle sales are forecast to rise to 15.9 million units in 2024, suggesting a 2% rise from 2023 levels.
Even though the auto industry is experiencing lower-than-expected demand for EVs, rising options for battery electric vehicles are expected to attract more buyers.