US NEW vehicle sales are expected to rise 1.4 per cent in February from a year earlier, driven by robust demand and a better supply of vehicles, according to a joint report by industry consultants JD Power and GlobalData on Thursday (Feb 22).
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 per cent, a full percentage point lower than in December.
Consumers are expected to spend US$40.80 billion on new vehicles, up US$1.40 billion from last year.
The average incentive spend per unit for the month is estimated to be around US$2,565, up from US$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 JD Power.
The average transaction price (ATP) for new vehicles in February is expected to be US$44,045, down US$1,919 from the same period in 2023. REUTERS
