U.S. light vehicle sales totaled 1.42 million in August, the GlobalData* consultancy said today. The annualized selling rate for the month was 15.1 million a year, down from 16.0 million a year in July. The daily selling rate was estimated at 50,600 units per day in August, down from 51,400 in July. Expectations were high coming into the month, given the inclusion of Labor Day in August for the first time since 2019.**
“August had long been earmarked as a potential bumper month for the auto industry, given a calendar that had not been seen since 2019. However, comparing August 2024 with the same month five years ago demonstrates that the market is still far from fully recovered, as sales were 222,000 lower than in August 2019. Although the industry as a whole is seeing higher incentives than has typically been the case in recent years, there appeared to be relatively few additional deals available for the Labor Day weekend, which may have held back August sales to some extent,”said David Oakley, Manager, Americas Sales Forecasts, GlobalData.
“Consumers will be keenly awaiting the Federal Reserve’s widely-anticipated interest rate cut in September, as high financing costs have been one factor inhibiting activity in the auto market this year. Still, tighter lending criteria, recalls, and low inventory on certain models are also acting as headwinds to sales,” said Oakley.
Data Points
- General Motors once again was the leading OEM in August on 238,000 units, with the challenge from Toyota Group being hindered by stop sales orders on the Toyota Grand Highlander and Lexus TX.
- Nevertheless, Toyota Group recorded sales of 198,000, easily ahead of Ford Motor Group at 176,000.
- The Toyota brand returned to the top of the rankings, having been unseated by Ford in July. Toyota recorded sales of 169,000, around 2,000 ahead of Ford. Chevrolet came in third on 154,000.
- There has been something of a reversal of fortunes over recent months, with the Ford F-150 reasserting itself as the nation’s leading LV, while the Toyota RAV4 has receded from the top spot that it occupied for four of the first six months of the year. The RAV4 is likely being restrained by inventory shortages. In August, the FordF-150 recorded sales of 40,300, ahead of the Honda CR-V at 38,500. RAV4 ranked third at 35,100. This was the first time that the CR-V outsold the RAV4 since April 2023.
- Compact Non-Premium SUV was the leading segment once again in August, with its market share of 20.7% being the highest it has achieved in four months.
- Mid-size Non-Premium SUV also saw an improvement in market share in August, reaching15.6%, compared to 14.9% in July.
- Large Pickups accounted for 13.5% of the total market in August, a return to more moderate levels after two consecutive months of shares of around 14%.
GlobalData Observations
- A strong seasonal factor kept the annualized selling rate in check, and there is a sense that volumes could have been higher, despite positive headlines around YoY growth.
- According to initial estimates, retail sales totaled 1.20 million in August, while fleet sales finished at 217,000, accounting for 15.3% of total volumes.
- US inventory levels are expected to rise slightly in August with volumes projected to be up by 1.0-1.5%, as demand cools for the third month in a row.
- Days’ supply is expected to be in a similar range as last month at 52-54 days.
- Production levels have also started to even out and August is expected to be the fourth month in a row of YoY contraction.
- There remains elevated risk for a further pullback in production levels as 2024 closes out.
*GlobalData
GlobalData says that “4000 of the world’s largest companies, including over 70% of FTSE 100 and 60% of Fortune 100 companies, make more timely and better business decisions thanks to GlobalData’s unique data, expert analysis and innovative solutions, all in one platform. GlobalData’s mission is to help our clients decode the future to be more successful and innovative across a range of industries, including the healthcare, consumer, retail, financial, technology and professional services sectors.” J.D. Power is also part of GlobalData. Inquiries at: customersuccess.automotive@globaldata.com
** AutoInformed on
U.S. Light Vehicle Sales in August 2024 Disappoint
U.S. light vehicle sales totaled 1.42 million in August, the GlobalData* consultancy said today. The annualized selling rate for the month was 15.1 million a year, down from 16.0 million a year in July. The daily selling rate was estimated at 50,600 units per day in August, down from 51,400 in July. Expectations were high coming into the month, given the inclusion of Labor Day in August for the first time since 2019.**
“August had long been earmarked as a potential bumper month for the auto industry, given a calendar that had not been seen since 2019. However, comparing August 2024 with the same month five years ago demonstrates that the market is still far from fully recovered, as sales were 222,000 lower than in August 2019. Although the industry as a whole is seeing higher incentives than has typically been the case in recent years, there appeared to be relatively few additional deals available for the Labor Day weekend, which may have held back August sales to some extent,”said David Oakley, Manager, Americas Sales Forecasts, GlobalData.
“Consumers will be keenly awaiting the Federal Reserve’s widely-anticipated interest rate cut in September, as high financing costs have been one factor inhibiting activity in the auto market this year. Still, tighter lending criteria, recalls, and low inventory on certain models are also acting as headwinds to sales,” said Oakley.
Data Points
GlobalData Observations
*GlobalData
GlobalData says that “4000 of the world’s largest companies, including over 70% of FTSE 100 and 60% of Fortune 100 companies, make more timely and better business decisions thanks to GlobalData’s unique data, expert analysis and innovative solutions, all in one platform. GlobalData’s mission is to help our clients decode the future to be more successful and innovative across a range of industries, including the healthcare, consumer, retail, financial, technology and professional services sectors.” J.D. Power is also part of GlobalData. Inquiries at: customersuccess.automotive@globaldata.com
** AutoInformed on