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The Automotive Market Outlook

As we step into 2024’s automotive landscape, it pays to keep a pulse on the market trends that will steer sales this year. Cox Automotive’s latest report paints a bright picture, showing a market that’s tough and ready to tackle challenges head-on.

Steady Sales Predicted

The Seasonally Adjusted Annual Rate (SAAR) for vehicle sales is projected to hit 15.7 million in 2024. This marks a modest increase from the previous year, indicating stable demand in the automotive sector.

Diversifying Sales Mix

The composition of vehicle sales continues to evolve. By 2024, electric vehicles (EVs) are expected to constitute 10% of sales, hybrids 14%, and internal combustion engine (ICE) vehicles will remain dominant at 78%. As we move towards 2025, this trend will further lean toward greener alternatives with an anticipated 15% EVs, 18% hybrids, and 69% ICE vehicles. This shift reflects the increasing consumer interest in sustainable and efficient transportation options.

Sustained Consumer Interest

Contrary to concerns, high vehicle prices haven’t deterred buyers. The average transaction price for EVs, hovering around $50,798, is on par with ICE and hybrid vehicles. This underscores the enduring appeal of new automotive technologies and the willingness of consumers to invest in quality vehicles.

Resilience Amidst High Interest Rates

Despite the uptick in interest rates, the auto market’s heartbeat remains strong. While interest rates have caused ripples, they haven’t significantly impacted sales. The market is adapting, shifting towards a balance where dealer discounts and incentives are making a comeback.

This scenario presents an opportunity for dealers to align with these trends. Understanding the evolving consumer preferences towards EVs and hybrids, coupled with the market’s adaptability to economic fluctuations, can guide your sales strategies and inventory decisions.

2023 Sales by Manufacturer

In 2023, Honda and GM emerged as the top performers in the auto market. Honda’s market share climbed to 8.4%, bolstered by a 33% surge in sales compared to 2022. GM also saw growth, with its market share increasing to 16.5% following a 14.1% rise in sales over the previous year.

Conversely, Toyota, Ford, and Stellantis experienced declines. Toyota’s market share dropped to 14.4%, Ford’s to 12.7%, and Stellantis’ to 9.8%. Tesla made notable gains, with sales reaching 654,888 vehicles in the US, a 25.4% increase from 2022. This positioned Tesla as the ninth-largest automaker in the US by volume, surpassing Subaru.

Starting the Year Strong

As we navigate 2024, remaining flexible and quick to adapt is essential. The automotive market is brimming with opportunities for sustained demand. Strong Automotive is here to help you navigate changes and make the most of this market.

John Paul Strong

John Paul Strong combines his two decades of automotive marketing experience with a team of more than 150 professionals as owner and CEO of Strong Automotive.

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