Sales of new vehicles in the United States will increase by 1% in 2024, says the specialized site

U.S. new vehicle sales are expected to rise just 1% to 15.7 million units next year, auto shopping site Edmunds said Wednesday, as demand is likely to come under pressure from high rates of interest, also with the improvement of the vehicle offer.

The EV market share is expected to increase slightly to 8% of total new vehicle sales in 2024, up from 6.9% in 2023 by November, the website adds.

“While next year promises further inventory growth and attractive deals that consumers look forward to, 2023’s high interest rates are likely to persist, triggering mixed market dynamics,” said Jessica Caldwell, chief insights officer at platform.

However, pent-up demand due to the pandemic remains strong, according to automakers.

Companies led by General Motors and Toyota Motor have reported robust new vehicle sales so far this year as improved demand and fewer supply chain issues have allowed them to ship more units to dealers.

Edmunds said its data suggests new vehicle prices have peaked as rising inventories bring incentives back to the market.

But buyers looking for affordable model options will struggle because these vehicles sell faster than their more expensive counterparts, the platform added.

The transition to all-electric vehicles has slowed, and hybrids are the most convenient choice for most Americans looking for electrified options, the website says.

Source: Terra

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