US new automobile gross sales set to rise 8.1% in February, report says

(Reuters) – U.S. new automobile retail gross sales are anticipated to rise 8.1% to 1.01 million models in February on an adjusted foundation, trade consultants J.D. Energy and GlobalData stated in a joint report on Thursday.

Nevertheless, the rise in gross sales is just not sufficient to offset the decline in complete revenue per unit for retailers, which is projected to be down 11.8% from February 2024.

WHY IT’S IMPORTANT

Regardless of reductions from producers and better gross sales volumes, rising seller inventories and elevated competitors have pressured profitability for retailers.

KEY QUOTE

“Automobile affordability stays a problem for the trade and is the first motive why the gross sales tempo, whereas strengthening, has not returned to pre-pandemic ranges,” stated Thomas King, president of the info and analytics division at J.D. Energy.

BY THE NUMBERS

The common retail transaction value for brand spanking new automobiles has been excessive and is trending towards $44,619, up $71 from February 2024.

The common incentive spend per automobile is predicted to develop 22.8% from a 12 months in the past.

Whole new-vehicle gross sales for February 2025, together with retail and non-retail transactions, are projected to achieve 1.24 million, a 3.5% enhance from a 12 months earlier. WHAT’S NEXT

The development of rising gross sales pushed by elevated reductions is predicted to proceed into March and past, the report stated.

The report added that components reminiscent of adjustments to electrical automobile tax credit, gas financial system rules and import tariffs may additionally have an effect on the market going forward.

(Reporting by Aishwarya Jain in Bengaluru; Modifying by Shreya Biswas)