US new vehicles sales set to rise in February, report shows

By Thomson Reuters Feb 22, 2024 | 8:10 AM

(Reuters) – U.S. new vehicle sales are expected to rise 1.4% in February from a year earlier, driven by robust demand and a better supply of vehicles, according to a joint report by industry consultants J.D. Power and GlobalData on Thursday.

Total new vehicle sales in the United States, which include retail and non-retail transactions, are estimated to touch 1.2 million units in February, according to the report.

The report said the volume growth was helped by higher inventory levels, higher manufacturer incentives and lower retailer profit margins which led to lower average transaction prices.

The report also added the number of buyers considering an electric vehicle for their next purchase dropped to 25.6%, a full percentage point lower than in December.

Consumers are expected to spend $40.80 billion on new vehicles, up $1.40 billion from last year.

The average incentive spend per unit for the month is estimated to be around $2,565, up from $1,464 from a year ago.

“Despite the landscape shifting towards increased volume with diminished per-unit profits, retail customers will still spend more on new vehicles this month than in any other February on record,” said Thomas King, president of the data and analytics division at J.D. Power.

The average transaction price (ATP) for new vehicles in February is expected to be $44,045, down $1,919 from the same period in 2023.

(Reporting by Nathan Gomes in Bengaluru; Editing by Vijay Kishore)