Sales volumes continued to grow for new vehicles, driven primarily by hybrids and EVs, while ICE units remained steady. Hybrids saw a standout performance, with sales increasing by 23% QoQ, making up 22% of Q4 2024 new vehicle sales. This represents a 3% increase from the previous quarter and a 4% increase from the same period last year. Conversely, ICE vehicles accounted for 4% less of Q4 sales compared to Q3, reflecting a gradual shift in consumer preferences.
The used vehicle market experienced a slight dip in overall sales volume QoQ, but EVs and hybrids showed notable growth. Despite these gains, ICE vehicles continued to dominate the used market, comprising over 90% of Q4 sales.
Both new and used inventories grew in Q4 2024 as dealers stocked up for the holiday season. This led to higher day supply and an increase in aged inventory levels heading into 2025. Dealers face a critical need to refine inventory management strategies to align stock with demand, minimize excess inventory, and avoid steep discounts on aged units.
New Vehicles:
- New vehicles saw sales increase by 7% with hybrids performing the best, increasing by 23% to now make up 22% of Q4 sales, up 3% from last quarter and 4% from last year.
- Day supply and aged ending inventory climbed to the highest they’ve been all year at 76 days and 54%.
- While markdown activity increased, the average last listed price for sold units increased by 3% QoQ, 2% YoY.
Used Vehicles:
- Used sales fell slightly QoQ as the last listed price continued to hold steady with no change QoQ and decreased by 5% YoY.
- Used vehicles saw a tight day supply all year but ended the quarter up 5 days QoQ at 42 days but still 2 days
less than last year.
Recommended action steps for upcoming months:
Dealers will need to manage economic pressures, rising inventories, and shifting market dynamics while adapting to a more digital, consumer-centric business environment. Proactive inventory management, competitive pricing strategies, and a focus on customer engagement will be critical to to navigating these challenges effectively.