Auto sales in the US increase by almost 10% in October
Auto sales volume rose by almost double digits this month in the United States, with inventories breaching the 3 million unit level for the first time, according to S&P Global Mobility.
“This would be warmly received by new vehicle shoppers who continue to be pressured by high interest rates and slow-to-recede vehicle prices, which are translating to high monthly payments.”
Amid high prices and interest rates, auto inventories are rising, exceeding three million units in September, the first time the level was breached, the report said.
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“This surge aligns with a broader trend we’ve observed over the past two years, where inventory levels consistently rise in the fall,” said Matt Trommer, associate director at the firm.
Matt Thompson, head of U.S. retail sales, said the company introduced an “aggressive incentive program” beginning in the third quarter. “We continue to take the necessary actions to drive sales and prepare our dealer network and consumers for the arrival of 2025 models.”
EV Sales Situation
According to the S&P report, battery electric vehicles (BEVs) have made up more than 8 percent of light vehicles sold in the United States every month since June. Two years back, EV share was around 6 percent.
“September BEV share was estimated to reach above 9 percent, and we expect October BEV sales to remain above that level again,” the company said. “Electric vehicle sales are expected to advance over the remainder of the year.”
Expectations for future EV sales declined in the third quarter. “A majority of dealers feel their EV sales will decline in the months ahead, not grow. The future EV sales index scores for both franchised and independent dealers were lower quarter over quarter and year over year in the third quarter.”
John Lawler, Ford’s chief financial officer, said the decision was taken to ensure profitability and capital efficiency of its EV business. Ford CEO Jim Farley said the new plan will benefit customers.
“We learned a lot as the number-two U.S. electric vehicle brand about what customers want and value, and what it takes to match the best in the world with cost-efficient design, and we have built a plan that gives our customers maximum choice and plays to our strengths,” he said.
Earlier, GM reduced its 2024 production forecast for electric vehicles by 50,000 units, pointing to weaker demand and a risk of oversupply.
