Shifting Back to Normal in Auto

US-automotive-inventory-2023-2024Analysts and forecasts are projecting a “return to normalcy” in the US automotive market in 2024.

Auto inventory levels are finally recovering to pre-pandemic levels, and as a result, pricing may stabilize for both new and pre-owned vehicles.

Analysts expect slow, steady growth during 2024, and note that EVs and hybrids combined may approach 24% of the market’s volume, with EVs alone reaching more than 10% of total sales.

New inventory is expected to reach pre-pandemic norms in 2024, with almost 3 million units available, or three times the amount during the chip shortage. Days’ supply will stay healthy.New vehicle transaction prices are expected to decline moderately. The increase in inventory is likely to lead to higher incentives and discounts; however, incentives won’t see the record highs reached in 2019 when discounting exceeded 10% of transaction prices and the new vehicle market was pushed above 17 million units for a 5th consecutive year. Market forces will likely exert downward pressure on vehicle prices, further improving consumer affordability.

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Forecast: 2024 — A Return to Normalcy in the U.S. Auto Market | MOTOR

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