New-Car Inventory Hits 2.5 Million Units, High Days’ Supply – Cox Automotive Inc.

Title: Analysis of Current Automotive Statistics

The most recent data concerning new-vehicle inventory has indicated that the figures have reached the highest level since the spring of 2021. An analysis of vAuto Available Inventory data by Cox Automotive has revealed that December began with a total supply of 2.56 million units, resulting in a 71-day supply, a two-year high.

It is worth noting that the inventory of electric vehicles has remained significantly higher than the industry average at 114 days’ supply. The increasing inventory, coupled with a slowdown in sales, has prompted some automakers to decrease production and/or increase incentives. This has consequently led to a decrease in new-vehicle transaction prices, down by 1.5% year over year, according to Kelley Blue Book.

As of December 6, the total U.S. supply of available unsold new vehicles was reported at 2.56 million units, signifying a 57% increase from the previous year. These figures include vehicles available on dealer lots and some in transit.

Moreover, the days of supply rose to 71 at the beginning of December, up from 69 at the start of November. Despite an increase in production following the conclusion of the UAW strike against the Detroit Three automakers, inventory levels remained substantially higher than the previous year.

Based on the daily sales rate for the most recent 30-day period ending on December 4, sales totaled nearly 1.01 million units, indicating a 7% increase from a year ago and a nearly 2% increase from October. The November seasonally adjusted annual rate (SAAR) was recorded at 15.3 million, representing an increase from 14.3 million the previous year, but a decrease from October’s 15.4 million.

In response to the escalating inventory, certain automakers have made strategic decisions to manage their supply levels. For example, Stellantis has announced the reduction of shifts and jobs at its Jeep plants in Detroit and Toledo, Ohio, citing the imposition of strict emissions standards by California and other states, which have hindered its gas-powered vehicle sales. Meanwhile, General Motors is scheduling downtime at several North American assembly plants to maintain and undergo product changeovers.

The analysis further revealed that while electric vehicle sales volumes are increasing, inventory levels are rising at a faster pace. New electric-vehicle supply peaked at 114 days at the end of November, indicating a surge throughout Q4, both in volume and days’ supply. Notably, the days’ supply for the Ford F-150 Lightning was reported at 111, slightly below the average for an electric vehicle. Consequently, Ford has adjusted its 2024 production targets for the all-electric pickup truck to align with customer demand.

It is noteworthy to mention that the report was authored by the experienced automotive analyst Michelle Krebs, who possesses over 35 years of expertise covering the global auto industry. Her expert insights have been influential, drawing from a wealth of consumer and industry data from Cox Automotive and its affiliated brands, including Autotrader and Kelley Blue Book.

In conclusion, the latest statistics on new-vehicle inventory reveal a significant upward trend with implications for the industry, prompting swift and strategic responses from automakers as they navigate the evolving market landscape.