Source: Marklines
2023 vs 2024 Sales
In comparison to Q1 cars sales of 2023, the Q1 car sales for 2024 have risen optimistically by 5.6%. Cumulative sales of about 3.8 million vehicles from the period of January to March. This is a very reassuring number considering the fact that interest rates on loans are higher.
Dealership inventories are growing substantially and are making companies reduce prices. The inventory in March has reached 1.7 million units which is a 39% increase when compared to March 2023. According to J.D. Power average sales price for the month of March 2024 was $44,186 which is around 3.6% less when compared to March 2023. The average discounts offered are also higher at $2800 when compared to last year.
Lack in EV Sales Growth
There are unusual trends going on with EV sales, while it grew at the rate of 47% and took 7.6% market share last year. It only managed to grow 3.3% in Q1 2024, managing 270,000 units. The market share of EVs has fallen to 7.15% in the Q1. This trend is also witnessed worldwide, so much so that Mercedes has halted the development of one of their EV platforms.
Brand-Wise Sales Performance
Apart from General Motors which have started to decline in sales, other manufacturers like Toyota, Honda, Volkswagen have improved when compared to the sales of 2023 Q1. Let us get some overview of the numbers,
General Motors delivered 594,233 units in the first quarter which is a decline of 1.5% than what it delivered in the 2023 Q1. The brands under GM such as Buick, Chevrolet, Cadillac and GMC have seen a slight increase in sales. GM Envolve declined to a massive 23%.
Toyota delivered 565,098 units in the first quarter of 2024 which is a good 20.3% rise when compared to 2023. More than one-third of the sales were accounted to be EVs, which is a jump of staggering 74% YoY.
Honda sold 333,824 vehicles which is a rise of 17.3% when compared to the Q1 of 2023. The luxury subsidiary Acura struggled but Honda pulled the sales up. It sold 61,915 EVs which is a rise of 25.5% YoY.
Nissan saw a rise of 7.2% with sales of 252,735 units, this is when its division, Infiniti, is down by 11.8% when compared to the 2023 Q1.
Volkswagen sold a total of 82,101 units which is up by 21% when compared to the first quarter of 2023. The strongest growth was seen by Jetta, a whopping 185% increase in sales and also the GTI and Golf which grew 156% and 125% respectively.
Growth Trends of 10 Best Selling Cars in America
Reading through the graph data column, we observe Ford F-Series have degenerated, RAM falling by 15% and Silverado’s poor growth of 2.1% in YoY comparison, which shows America’s disinterest in large vehicles now. Rather, people are tending to buy RAV4, CR-V, Civic all of which show huge growth numbers of over 30%, all of these cars are far more efficient and practical in nature.
What do these Sales figures infer and where are the American car sales headed?
EVs are selling lower than expected, the market seems to go for practical and affordable petrol engined alternatives. The sales growth is positive taking into account that interest rates are at 24 year high. The interest rates are expected to be lowered later this year. The unsold vehicles from piling inventories are offered with good discounts and that also is a reason consumers are trying to catch hold of a good deal.
With companies canceling their EV platforms pulling them off the development shows a lot of intent from the car manufacturers about how EVs would be leading the world. Right now, the American consumers are choosing cheaper and practical cars.
