Supply Sees a (Non-Seasonal) Decline for the First Time in Two Years
GRAND RAPIDS, Mich., Aug. 5, 2024 /PRNewswire/ — Cloud Theory, the real-time automotive data insights provider for automotive manufacturers, agencies, and affiliates is reporting in August’s On The Horizon that new vehicle inventory ticked down slightly to 2.92 million, a decline of 0.02 million from the prior month. This is the first pullback—other than seasonal drops from December to January—to have occurred in two years.
Diagnostic numbers also point to a range-bound demand picture, with turn rates perpetuating a trend that has generally been in the mid-to-high 30s for the past seven months. Average marketed pricing has stayed steady for three months running, but market adjustments—which measure the discounts and incentives visible to consumers—continue to increase.
“Our numbers have been pointing to a slowdown in supply growth, and it was inevitable that the industry would eventually reach a ceiling,” said Rick Wainschel, Vice President of Data Science & Analytics at Cloud Theory. “We had been slowly marching toward a three million count, and it looks like we are going to land very close to that number.”
Toyota Motor Corporation continues to dominate this month’s Inventory Efficiency Index, with Toyota and Lexus in the top two slots (and leading every segment in which they compete). Honda Motor Company, with Honda at #3 and Acura at #6, also continues to fare well. And General Motors, with three brands in the top 10 (and Cadillac at #12), remains strong on this metric. It is noteworthy that those three manufacturers have significantly reduced their inventory counts when compared to pre-pandemic levels.
“It is not a coincidence that the makes with leaner supplies are the ones moving their vehicles efficiently,” said Ron Boe, Chief Revenue Officer at Cloud Theory. “Toyota, Honda, and General Motors have demonstrated that it is possible—and maybe even probable—to do more with less.”
To see more trends and forecasts on inventory, movement, segment trends, and inventory efficiency, download a copy of the August 2024 On the Horizon report here.
Cloud Theory’s On the Horizon report puts proprietary, real-time data into a historical context, so automotive OEMs can view and understand critical insights that help make decisions involving allocating marketing and incentives dollars.
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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