New-Vehicle Sales Hit Double-Digit Increase

Takeaway: The new-vehicle market in 2023 improved versus 2022 and ended on a high note thanks in part to improving inventory levels. December surprised on the upside with over 1.4 million sales, the highest-volume month of the year and, in fact, the best month since the spring of 2021. New-vehicle sales in December 2023 were higher year-over-year by 13%. For the year, 2023 finished with nearly 15.5 million sales, a strong 12% increase over 2022’s inventory-constrained market and the best year since 2019. Retail new-vehicle sales finished at 12.7 million units. Fleet sales, which increased 34% year over year, helped the total number.

What’s next: With growing supply and downward pressure on new retail prices, new-vehicle sales in 2024 are expected to gain over 2023, but market growth will be constrained, with an increase of less than 2% expected and the new-vehicle market reaching sales of 15.7 million sales. Retail new-vehicle sales are forecast to be mostly flat in the year ahead at 12.7 million units, with fleet sales continuing to improve, although at a pace slower than 2023.