New Vehicle Inventory Slowly Approaching 3 Million, Sales Beginning to Stall

Marketed Discounts Becoming More Aggressive as Supply Growth Outpaces Demand

GRAND RAPIDS, Mich., July 3, 2024 /PRNewswire/ -- Cloud Theory, the real-time automotive data insights provider for automotive manufacturers, agencies, and affiliates is reporting in July's On The Horizon report that new vehicle inventory continues to slowly increase, hitting 2.93 million in the current month. New vehicle movement, on the other hand, has hit a plateau, sitting at 1.13 million. That metric is forecasted to remain at that same level in July.

Diagnostic numbers also point to a continued flattening of demand, with turn rates unchanged in the current month at 39%. Average marketed pricing ticked up for the third straight month, but this reflects model mix shifts and early model year changeovers rather than an ability to command premium prices. This is evidenced by a continued increase in market adjustment levels, which measures the gap between marketed discounts and MSRP. That differential has grown by $1,000 over the past year.

"Even though inventory growth has slowed to a trickle, it is still going up," said Rick Wainschel, Vice President of Data Science & Analytics at Cloud Theory. "With a stabilizing demand picture, this is putting pressure on sellers to rely more heavily on incentives and pricing discounts."

Toyota Motor Corporation continued to dominate this month's Inventory Efficiency Index (IEI) scores at a brand level, with Toyota and Lexus holding the top two spots. General Motors also built on its strong showing, with Chevrolet moving up four ranks to #4, Buick moving up one spot to #7, and GMC re-entering the top 10.

Looking at a longer-term trend, Toyota has broadened its IEI lead over Honda, while Lexus grew for the second consecutive month."TMC's first-half dominance in moving their inventory efficiently across multiple segments shows that their strength is very widespread," said Ron Boe, Chief Revenue Officer at Cloud Theory, "but General Motors has a deep lineup in the SUV and truck segments, and that gives it an advantage over other makes as well."

To see more trends and forecasts on inventory, movement, segment trends, and inventory efficiency, download a copy of the July 2024 On the Horizon report here.

Cloud Theory's On the Horizon report puts proprietary, real-time data into a historical context, so automotive OEMs can view and understand critical insights that help make decisions involving allocating marketing and incentives dollars.

About Cloud Theory

Cloud Theory is more than a concept. It is the eye of the storm, where cutting-edge data, software, and artificial intelligence meet deep industry knowledge and experience. Built for automotive manufacturers, agencies, and affiliates, Cloud Theory enables our customers to understand – in real time – the complex competitive world in which they do business and to make bold decisions that drive them forward. The combination of billions of data points, interactive tools, and expert consulting gives our clients the ability to weather any storm and find their way to clear blue skies. Learn more at cloudtheory.ai. To learn more about our entire portfolio of automotive brands, visit www.advancelocalautomotive.com.

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SOURCE Cloud Theory