According to Thomas King, president of J.D. Power’s data and analytics division, “November results demonstrate that vehicle production is continuing to improve, with available retail inventory exceeding 1 million units for a second consecutive month and a larger share of manufacturers’ production being allocated to fleet customers.”
Demand continuously outpaces supply in the retail market, as seen by the persistence of high transaction prices, retailer profitability, inventory turnover rates, and the lack of significant manufacturer discounts. These indicators will, however, begin to moderate or drop as inventories and interest rates rise.
“Inventories are expected to climb by double digits for a fourth consecutive month. However, consumers continue to struggle with high monthly payments and access to credit, which keeps many from buying “said Zack Krelle, a TrueCar industry analyst. “Manufacturers appear to be moving some of the additional supply to non-retail sales to sustain sales momentum.”
According to reports made by automakers, these include the sales made in November:
- Compared to Lexus, Toyota sales increased by 12 percent. Sales of Toyota vehicles increased by 42 percent, with the Corolla seeing an 80 percent increase, although the firm sold 3.7 percent less SUVs than it did in 2021.
- According to Mazda Motor Corp., sales in November increased by 31% to 26,906 vehicles.
- Subaru deliveries increased by 52%. With Subaru Crosstrek, Forester, and Legacy sales are more than doubling from the previous year.
- Deliveries also jumped 43% at Hyundai and 25% at Kia
- On the other hand, Honda‘s sales are currently down 35%. The CR-V, HR-V, Accord, and Civic, Honda’s four best-selling models, all had disappointing drops in sales in November.
- Dealerships are also selling fewer cars above sticker price currently; 41% in November vs. 50% in July.
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