Marketed Discounts Becoming More Aggressive as Supply
Growth Outpaces Demand
GRAND
RAPIDS, Mich., July 3, 2024
/PRNewswire/ -- Cloud Theory, the real-time automotive data
insights provider for automotive manufacturers, agencies, and
affiliates is reporting in July's On The Horizon report that
new vehicle inventory continues to slowly increase, hitting 2.93
million in the current month. New vehicle movement, on the other
hand, has hit a plateau, sitting at 1.13 million. That metric is
forecasted to remain at that same level in July.
Diagnostic numbers also point to a continued flattening of
demand, with turn rates unchanged in the current month at 39%.
Average marketed pricing ticked up for the third straight month,
but this reflects model mix shifts and early model year changeovers
rather than an ability to command premium prices. This is evidenced
by a continued increase in market adjustment levels, which measures
the gap between marketed discounts and MSRP. That differential has
grown by $1,000 over the past
year.
"Even though inventory growth has slowed to a trickle, it is
still going up," said Rick
Wainschel, Vice President of Data Science & Analytics at
Cloud Theory. "With a stabilizing demand picture, this is putting
pressure on sellers to rely more heavily on incentives and pricing
discounts."
Toyota Motor Corporation continued to dominate this month's
Inventory Efficiency Index (IEI) scores at a brand level, with
Toyota and Lexus holding the top two spots. General Motors also
built on its strong showing, with Chevrolet moving up four ranks to
#4, Buick moving up one spot to #7, and GMC re-entering the top
10.
Looking at a longer-term trend, Toyota has broadened its IEI
lead over Honda, while Lexus grew for the second consecutive
month."TMC's first-half dominance in moving their inventory
efficiently across multiple segments shows that their strength is
very widespread," said Ron Boe,
Chief Revenue Officer at Cloud Theory, "but General Motors has a
deep lineup in the SUV and truck segments, and that gives it an
advantage over other makes as well."
To see more trends and forecasts on inventory, movement, segment
trends, and inventory efficiency, download a copy of the
July 2024 On the
Horizon report here.
Cloud Theory's On the Horizon report puts proprietary,
real-time data into a historical context, so automotive OEMs can
view and understand critical insights that help make decisions
involving allocating marketing and incentives dollars.
About Cloud Theory
Cloud Theory is more than a concept. It is the eye of the storm,
where cutting-edge data, software, and artificial intelligence meet
deep industry knowledge and experience. Built for automotive
manufacturers, agencies, and affiliates, Cloud Theory enables our
customers to understand – in real time – the complex competitive
world in which they do business and to make bold decisions that
drive them forward. The combination of billions of data points,
interactive tools, and expert consulting gives our clients the
ability to weather any storm and find their way to clear blue
skies. Learn more at cloudtheory.ai. To learn more about our
entire portfolio of automotive brands,
visit www.advancelocalautomotive.com.
For media inquiries, please contact:
Mike DeVilling
mdevilling@cloudtheory.ai
Jennifer Haun
jhaun@cloudtheory.ai
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SOURCE Cloud Theory