April Light-Vehicle Sales Projected at 1.34 Million

By Staff Writer May 01, 2024 816

S&P Global Mobility projects new light-vehicle sales volume in April 2024 to reach 1.34 million units. While this unadjusted volume total would be a drop from both the month prior (down 7%) and year-ago (down 2%) levels, two fewer selling days than March 2024 and one less than April 2023 more than account for any potential declines. This volume would translate to an estimated sales pace of 16.0 million units (seasonally adjusted annual rate: SAAR), just the third time in the past 24 months the metric has reached this level.

“With an auto sales environment currently defined by the mixed signals of advancing inventory and incentives, together with affordability concerns from high interest rates and still high vehicle prices, the anticipated April result reflects consumers are still in the market for a new vehicle,” said Chris Hopson, principal analyst at S&P Global Mobility.

Retail advertised inventory continues its steady rise, and stands now at 2.97 million units, an increase of 65% vs. last year. While most dealer inventory comprises 2024 and some 2025 model year vehicles, pockets of older inventory remain. 

“Consumers in the market for a new vehicle are increasingly able to find opportunities for discounts coming from the availability of more vehicles in dealer inventory,” said Matt Trommer, associate director at S&P Global Mobility.

The supply side of the auto equation is continuing to show signs of advancement, hinting at sustained growth for inventories and incentives moving through 2024. According to Joe Langley, associate director at S&P Global Mobility, “The outlook for North American light-vehicle production for 2024 was revised higher by 1.5% to 16.0 million units on demand resilience and more importantly on stronger production results, indicating minimized impact of supply chain issues.”

“Advancing production levels set the stage for incentives and inventory to continue to develop, potentially enticing new vehicle buyers who remain on the sidelines due to higher interest rates,” said Hopson. “It will be a bumpy ride and month-to-month sales volatility is likely.  S&P Global Mobility projects calendar-year 2024 light vehicle sales volume of 16.0 million units, a 3% increase from 2023.”

 

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Last modified on Tuesday, 07 May 2024 09:53