Cox Automotive, a prominent provider of automotive services and technology, has made a forecast suggesting that the U.S. auto market will return to a state of normalcy in 2024. This forecast follows several years of unpredictable fluctuations caused by the global pandemic and its aftermath. The company has highlighted five key themes that will shape the industry’s future, providing valuable insights for consumers, dealers, and industry professionals.
The first theme revolves around the projected slow growth of the economy, an expectation that may not be very exciting but still signifies a welcome improvement from the instability of a recession. High interest rates and limited consumer spending may dampen economic expansion, but the absence of a recession bodes well for the health of the auto industry. Despite some challenges, Cox Automotive remains optimistic about the market’s prospects.
Another theme focuses on the return of vehicle supply to pre-pandemic levels, benefitting consumers as it puts downward pressure on prices. New-vehicle inventory is expected to increase, leading to higher incentives and discounts. This uptick in supply may prompt a moderate decline in transaction prices, further enhancing affordability for potential buyers. The used-vehicle market is also projected to grow, indicating a promising outlook for both new and pre-owned car segments.
Furthermore, 2024 is anticipated to be the year of more for electric vehicles (EVs). With an increase in models, incentives, discounting, advertising, and sales efforts, Cox Automotive expects a surge in EV sales, surpassing the record set in 2023. The company predicts that electric vehicles, including hybrids, will account for a substantial portion of the market, positioning EVs as a significant driver of industry growth in the coming year.
Dealerships, however, may face challenges in protecting their profit margins due to rising manufacturer’s suggested retail prices and increased labor and material costs. While dealerships may encounter some difficulties, the overall environment for car buyers in 2024 is projected to be more favorable, with increased options, better deals, and improved access to online buying tools. This suggests that 2024 will be a promising year for consumers looking to purchase a vehicle.
In conclusion, Cox Automotive’s 2024 forecast offers a glimpse into a more stable and balanced auto market following a period of unprecedented turmoil. The return to normalcy is expected to benefit consumers, dealers, and industry stakeholders, signaling a positive outlook for the U.S. car market in the coming year. With careful consideration of economic trends and market forces, the forecast sets the stage for a year that is not only ordinary but also welcome and relieving in the wake of recent unpredictability.
Regarding Cox Automotive
Cox Automotive is a global provider of automotive services and technology, using a wealth of first-party data to tailor solutions for various stakeholders within the automotive industry. With a broad family of trusted brands, the company is committed to offering comprehensive and innovative services to meet the diverse needs of car shoppers, dealers, retailers, and other industry participants. As a subsidiary of Cox Enterprises Inc., Cox Automotive continues to play a pivotal role in shaping the future of automotive retail and services.
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