New-Vehicle Inventory Level Up 51%
Wednesday March 20, 2024
Takeaway: The key driver of new-vehicle sales performance in 2023 was the supply recovery. The year saw consistent improvement in product availability as global supply chains returned to normal. The year ended with nearly 2.7 million vehicles available, up over 900,000 units, or 51% from where we ended 2022. Days’ supply was 71 at the end of 2023, which is 12 days higher than the same time of the prior year.
What’s next: In 2024, Cox Automotive is expecting new-vehicle inventory to rise, incentives to be higher and discounting to increase. New inventory is expected to reach pre-pandemic norms in 2024, with almost 3 million units available, or three times the amount during the chip shortage. Days’ supply will stay healthy.