New Vehicle Inventory Surpasses 2 Million for the First Time in More Than Two Years; Ford, Toyota Lead Biggest Movers in Inventory and Vehicle Movement
GRAND RAPIDS, Mich., Oct. 5, 2023 /PRNewswire/ — Cloud Theory, the real-time automotive data insights provider, has announced its September Inventory Efficiency Index results, which shows that Honda has widened its lead over #2 Kia. Cadillac, which has steadily risen through the ranks over the course of 2023, is now ranked 4th. On a regional basis, Honda is now leading in almost every geography, with a #1 ranking in 8 of the 9 U.S. census areas.
On the supply and demand front, new car inventory has surpassed 2 million for the first time in two years, gaining 5.9% on a month-over-month basis. Vehicle Movement remains above 1 million, gaining 2.8% over the prior month. Ford and Toyota are the biggest gainers on both metrics.
Cloud Theory’s patent-pending Inventory Efficiency Index (IEI) provides a previously unavailable real-time view of market-relevant supply and demand of all makes and models and across all geographies. Key decision-makers can use the IEI to confidently allocate valuable marketing and incentive dollars to models or geographies requiring a boost in demand, or to redistribute vehicles to locations that are moving inventory more efficiently. Cloud Theory’s Inventory Efficiency Index assigns scores to vehicle makes and models based on current active inventory and sales data relative to competitors.
- A score of 100 means that an OEM’s demand is balanced with its relative supply in the marketplace.
- A score above 100 indicates that a make or model is selling its inventory more efficiently than average.
- A score below 100 means that there are opportunities to bring demand into better alignment with supply (or vice versa).
Honda Widens Inventory Efficiency Lead
Honda has further widened its lead over Kia, with a +1.7 MOM change in its IEI score vs. a 9.8 point drop for Kia. Toyota remains in third place overall, with a MOM gain of +3.1 from August to September. Cadillac, which started 2023 with the 13th highest IEI score, has been steadily rising through the rankings throughout the year, and currently sits in the 4th spot – up one ranking from last month.
“The makes that are in the top 10 did not change in the current month, but there are still meaningful shifts that have occurred in our numbers,” said Rick Wainschel, Vice President of Data Science & Analytics at Cloud Theory. “Honda’s grip on the top spot is tightening, but a brand to watch continues to be Cadillac. Other makes such as BMW and Subaru got hit this month, with the former falling three places in September.”
Honda Expands its Lead Geographically
Honda’s Inventory Efficiency Index score supremacy now spans across almost the entire country, leading in 8 out of the 9 U.S. Census regions. This is up from 5 of 9 in the previous month, indicating that Honda is solidifying its hold as the top make on a broad geographical basis.
Inventory and Vehicles Moved Both Growing
In terms of new Average Inventory and Vehicles Moved trends, both metrics are moving in a positive direction this month, though the former (up 5.9%) is growing faster than the latter (up 2.8%). Average Inventory, which has been climbing steadily from the supply chain-challenged aftermath of the post-COVID era, surpassed 2 million for the first time since April 2021 – a key milestone on what has been a long recovery period for the industry. Vehicle Movement has been on a slower climb but remains above 1 million for the 6th month in a row.
Ford and Toyota are at the top of the Biggest Mover list on both Average Inventory and Vehicles Moved – particularly on the latter metric, where those two makes are the only ones to grow by more than 10,000 units month-over-month. It is noted that half of the Biggest Movers in terms of Average Inventory are domestic makes, and four of the top 10 on Vehicles Moved are as well.
“Inventory and Vehicle Movement are key indicators of industry health,” said Ron Boe, Chief Revenue Officer at Cloud Theory. “While we likely won’t return to levels seen prior to the pandemic any time soon, the fact that inventory levels have hit the 2 million milestone is a great sign that we are heading in the right direction.”
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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