February saw a resurgence in new vehicle inventory, from 2.54 million units in January to 2.69 million units, coupled with a noteworthy decrease in pricing, according to data from Cloud Theory, a provider of real-time automotive data insights. The surge also surpassed the December figures of 2.64 million.
Following a temporary decline in January, new vehicles sold also saw a strong recovery in February, reaching 1.06 million, a 13% month-over-month increase. Cloud Theory anticipates this upward trend to continue, forecasting a movement of 1.10 million vehicles in March, matching the peak levels observed over the past year.
While inventory and movement are on the rise, vehicle pricing is experiencing a downward trajectory. For the first time in more than a year, prices have dipped below the $50,000 mark, although the rate of decline has decelerated over the recent months.
"As expected, the new vehicle market shook off the January declines that are typically seen as a new year kicks off," said Rick Wainschel, vice president, data science and analytics at Cloud Theory. "The growth in both supply and demand is a welcome sign, though the former is still increasing faster than the latter over the long haul, which points to a selling environment that will continue to be challenging."
Cloud Theory's proprietary Inventory Efficiency Index reveals a stable month-over-month scenario, with Toyota maintaining its lead, followed by Honda and Cadillac. General Motors, with Chevrolet rising to seventh and GMC to eighth, demonstrates efficiency across its diverse portfolio.
"GM's performance is a testament to an OEM's ability to achieve efficiency, regardless of its size," said Ron Boe, chief revenue officer at Cloud Theory.
For more detailed insights into inventory trends, vehicle movement, segment dynamics and inventory efficiency, download the March 2024 On the Horizon report.
