US new vehicle sales set to rise 7.3% in December, report says
Dec 19 (Reuters) -U.S. new vehicle sales are expected to rise 7.3% in December, aided by deeper discounts fromautomakers and dealers, industry consultants J.D. Power and GlobalData said in a joint report on Thursday.
WHY IT'S IMPORTANT
he rise in December sales points to a resilient new-vehicle market, which faces pressure from high interest rates. However, the 7.3% increase is smaller than the 13% rise projected last December by the consultants..
KEY QUOTES
"While per-unit (vehicle) profits are declining, resilient consumer demand—assisted by increased inventory and leasing activity—has supported a solid year-end performance," said Thomas King, president of the data and analytics division at J.D. Power.
BY THE NUMBERS
December total new-vehicle sales are projected to rise to 1,520,000 from last year, though the month has one lesser selling day compared to previous year.
The seasonally adjusted annualized rate (SAAR) for total new-vehicle sales is expected to be 17.2 million units, up 1.1 million units.
EV SALES
Consumer interest in electric vehicles is waning. Only 25% of new car buyers are considering an EV for their next purchase, a 2% decrease from last year.
This decline is also impacting Tesla TSLA.O, which has seen its share of EV sales shrink in 2024.
WHAT'S NEXT
US auto sales are set to hit 16.18 million units in 2025, up 1.2% from this year, according to a separate report from S&P Global Mobility.
"Unfortunately, the new vehicle affordability issues that coalesced to constrain auto demand levels for much of 2024 will not be resolved quickly in 2025," said Chris Hopson, manager of North American light vehicle sales forecasting for S&P Global Mobility.
Reporting by Anshuman Tripathy in Bengaluru; Editing by Tasim Zahid
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
