Business Today: Car Sales Surge in the US in February 2024
The car market in the US is experiencing a significant growth, with sales of nearly 1.3 million vehicles recorded in January and February 2024, a 10.7% increase compared to the same period last year. The popularity of hybrid cars and increased inventory levels played a crucial role in attracting more buyers to dealerships, allowing most automakers to improve their sales figures since the beginning of the year.
Higher Than Expected Sales Growth
Car deliveries have increased by 9.2% in February 2024, surpassing the 5.6-6.3% growth forecasted by J.D. Power, GlobalData, Cox Automotive, and S&P Global Mobility. Moreover, the annual sales rate, adjusted for seasonality, has exceeded 16 million, surpassing the projected 15.4-15.5 million mark.
According to a report by Automotive News, larger price reductions, improved dealer inventory, and milder weather were the main factors contributing to the sales increase. GlobalData’s preliminary report indicates that daily car sales reached 50,000 units in February 2024, up from 42,400 units in January.
Winners in the Market
Honda and Toyota were among the biggest winners in the previous month, achieving sales growth rates of 32% and 16% respectively. Ford also experienced double-digit growth, increasing its sales by 11% and maintaining its leadership position in terms of sales volume.
All three companies benefited from the popularity of their electric vehicle (EV) offerings. Toyota reported an 84% increase in hybrid and EV sales, with the Prius achieving an astonishing 363% sales growth. Similarly, Ford witnessed a 32% increase in hybrid vehicle sales, with the Maverick accounting for over half of its sales volume. Lastly, Hyundai saw a 7% increase in sales of its electric, hybrid, and plug-in hybrid models.
Commercial and Rental Market Boost
Another factor contributing to the market’s growth is the higher number of deliveries to commercial customers and daily rental operators compared to recent years. GlobalData reports that the fleet sales reached a total of 257,000 units in the previous month, capturing a significant market share of 20.6%.
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