As the UAW strike continues, the wholesale market has settled into a period of stability when it comes to pricing trends. However, buyer interest has been up at auctions with the conversion rates continuing to climb each week, according to Black Book Market Insights.
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Kia America posted its best-ever third quarter sales total of 210,341 units. This achievement marks the third time in company history in which Kia’s quarterly sales passed the 210,000 unit mark. These record-breaking sales performances contributed to Kia’s best-ever total through nine months of 604,674 units.
In September, Kia posted its best-ever September sales total of 67,264 units, marking the brand’s 14 consecutive month of year-over-year sales increases. Sales of Kia’s lineup of rugged and capable utility vehicles increased 19-percent year-over-year, while the brand’s battery-electric vehicles were up 127-percent over the previous record set in September 2022. Kia’s retail-only performance of 62,661 units represents 14-percent growth over the same period last year.
In September, Kia posted its best-ever September sales total of 67,264 units, marking the brand’s 14th consecutive month of year-over-year sales increases. Sales of Kia’s lineup of rugged and capable utility vehicles increased 19-percent year-over-year, while the brand’s battery-electric vehicles were up 127-percent over the previous record set in September 2022. Kia’s retail-only performance of 62,661 units represents 14-percent growth over the same period last year.
“With the best-ever performance through Q3, 14 straight months of year-over-year growth, and sales of our SUV and electrified offerings continuing to gain market share, Kia is ahead of the curve and delivering the vehicles customers want, particularly in the highly competitive segments,” said Eric Watson, vice president, sales operations, Kia America. “As we enter the fourth quarter, we are confident our mix of world class models will continue to attract new customers and keep current ones coming back.”
Ten Kia models posted year-over-year sales increases including: Niro (+1,341-percent); Carnival (+187-percent); EV6 (+45-percent); Rio (+45-percent); Forte (+28-percent); Seltos (+18-percent); K5 (+11-percent); Sorento (+10-percent); Telluride (+8-percent); and Soul (+3-percent). In addition, three Kia models set best-ever September sales records, including: Carnival, EV6 and K5, with sales of Kia’s utility vehicles accounting for 72-percent of the brand’s overall September sales total.
DETROIT – Cox Automotive executives discussed EV issues during the Sept. 13 Mobility Global Forum segment of the Detroit Auto Show. Joe George, president of Cox Automotive Mobility, and Lea Malloy, head of the EV Battery Business for Cox Automotive Mobility. “I went through the whole Internet change in 1998 when the internet was first coming around,” George said, “and it feels similar with this electrification and what a dynamic sea change this is going to be in our industry.” George pointed out that Q2 showed record sales for EVs, though those are in contrast to a much larger number of vehicles on the road. Still the 300,000 units sold was 50% more than the same period in 2022, George said.
Malloy said only 10% of new vehicle launches are electric. George said the industry will have to help push those numbers along. Govrnment policies and incentives are already helping drive EV adoption. In 2022, the Defense Production Act provided essential supply chain stability for critical minerals, and the even more significant Inflation Reduction Act, which came into play in January 2023, spurred sales and supported expanded battery manufacturing in the U.S. Malloy added the Inflation Reduction Act included new requirements for parts, including minerals, which will likely boost recycling and sustainable practices that the industry is embracing. In this arena, Cox Automotive has an ambitious goal: to be a leader in comprehensive battery lifecycle management.
Malloy said the Inflation Reduction Act includes expanded incentives for new vehicles as well as used vehicles, using these incentives to drive behavior. The core of Cox Automotive’s approach is the “re-X” activities — repair, remanufacturing, refurbishment, and renewal. This broad, sustainability-first strategy not only prolongs the life of batteries but also significantly reduces the need for mining new minerals. Cox Automotive’s pursuit is “urban mining,” which recovers raw materials from used batteries. In this sense, recycling is not just about responsible disposal but also resource conservation and a circular economy. “But we’re also committed to innovation around battery health,” Malloy said. “We also want some first class capabilities through our Manheim wholesale auto auctions to help drive confidence and transparency in the used-EV purchase, which is another key driver in EV adoption.”
Malloy said consumers are “conflicted” about EVs. While Cox data shows 50% of consumers are interested in purchasing an EV, that doesn’t translate into actual purchases. The top three concerns today, remain the same as they were three years ago: price, factors surrounding battery lifespan, replacement costs etc., and concerns about charging stations and availability. Malloy the spotlight on recycling incentives with grant money and other recourses could provide the research and technological advancement the industry with a more closed loop system for EV battery caretaking.
Being able to extend the initial life of a battery pack or recycle it means not going back to mining the earth for new materials, Malloy said. “No. 2, we’re playing an important role in transitioning the industry – based largely here in Detroit – from a combustion industry into an electric future,” she said. Part of that value proposition is making the planet and neighborhood a better place, she added. It's also good from an economic perspective as any repaired part, especially in the case of a battery pack, can be offered up as a 30-50% less than a new part. More and more OEMs are also going to be required in producing battery packs with recycled materials.
Cox plays a big part in the “urban mining” of processing old EV parts and battery packs. Malloy said EV batteries will remain the most valuable component of these vehicles. This will battery marketplaces, trading these assets for second or third lives in the auto industry or energy storage industry. In addition, Manheim offers a battery health capability that is VIN specific that it provides a battery health score to its customer as part of a condition report, based on a number of factors. Mallow predicts new EV sales will hit about 1 million this year. “But this is a decades-long play,” she said
Cox Auto ~ END-TO-END ~ EV Battery Services
Bank economists expect credit conditions to weaken over the next six months, according to the American Bankers Association’s latest Credit Conditions Index.
The latest summary of ABA’s Credit Conditions Index examines a suite of indices derived from the quarterly outlook for credit markets produced by ABA’s Economic Advisory Committee (EAC).
The EAC includes chief economists from North America’s largest banks. Readings above 50 indicate that, on net, bank economists expect business and household credit conditions to improve, while readings below 50 indicate an expected deterioration.
According to the Q4 2023 report, most EAC economists believe that both credit quality and credit availability will weaken over the next six months for both consumers and businesses:
For the fourth quarter release:
“Top bank economists serving on our Economic Advisory Committee are forecasting weak growth in household spending and business investment over the next four quarters before a modest pickup in the second half of next year,” said ABA Chief Economist Sayee Srinivasan. “Accordingly, ABA’s latest Credit Conditions Index indicates that banks will continue to exercise greater caution in lending decisions until at least the end of the year.”
Mazda reported total September sales of 28,031 vehicles, an increase of 17.9% compared to September 2022. Year-to-date sales totaled 272,617 vehicles; an increase of 26.6% compared to the same time last year. With 26 selling days in September, compared to 25 the year prior, the company posted an increase of 13.4 % on a Daily Selling Rate (DSR) basis.
CPO sales totaled 5,558 vehicles in September, an increase of 34 percent compared to September 2022.
Sales Highlights
- 12th straight month of year-over-year gains.
- Best-ever sales of CX-90 with 4,701 vehicles sold.
- Best-ever September sales of CX-50 with 3,417 vehicles sold.
- Best-ever September sales CX-30 with 6,924 vehicles sold.