New Vehicle Inventory Reaches Post-COVID High 3.25 Million Units in December; Pricing Remains High Despite Slower Demand Growth

Cloud Theory Releases December 2024 "On the Horizon" Report Highlighting Key Trends in Vehicle Inventory and Pricing

GRAND RAPIDS, Mich., Jan. 16, 2025 /PRNewswire/ -- New vehicle inventory surged 23% from Dec. 2023 to Dec. 2024, reaching a post-COVID high of 3.25 million units, according to Cloud Theory's December "On the Horizon" report. Cloud Theory, a leading innovator in data-driven automotive insights, publishes "On the Horizon" monthly, offering in-depth analysis of vehicle inventory, consumer demand, and pricing trends.  

Inventory Growth Surpasses Vehicle Movement

New vehicle inventory rose by more than 600,000 units versus a year ago, climbing steadily throughout 2024. However, vehicle movement grew at a slower, more inconsistent pace, increasing just 8% year-over-year. This imbalance has shifted the industry's focus toward supply, evidenced by declining turn rates and an increase of 20 days in days-to-move metrics.

Elevated Prices Persist

Despite elevated inventory levels, vehicle prices remained remarkably stable at an average of $50,000 throughout 2024. Market adjustments—which reflect discounts and incentives made visibly by dealers on their vehicle detail pages—increased modestly but failed to offset inflationary pressures and OEMs' focus on high-end models.

"Price declines that would normally accompany a growing supply and flatter demand picture have not materialized," said Rick Wainschel, Vice President of Data Science & Analytics at Cloud Theory. "Inflation and a greater emphasis on premium models and higher end trims have kept prices elevated, presenting challenges for many consumers."

Looking ahead, the automotive market faces competing forces. Potential tariffs under the incoming Trump administration could drive costs higher, while greater supply may compel OEMs to adopt more aggressive discounting strategies.

Lexus Leads in Inventory Efficiency

Cloud Theory's Inventory Efficiency Index highlights notable trends in supply and demand alignment. Lexus emerged as the leader in efficiency for the latter half of 2024, driven by a 44% reduction in inventory between July and December. Toyota, Honda, Subaru, and BMW also maintained strong performance throughout the year. Meanwhile, brands like Cadillac, Kia, and Hyundai faced challenges sustaining their early-year momentum.

"Manufacturers with consistently high Inventory Efficiency Index scores have a clear advantage in balancing supply and demand," said Ron Boe, Chief Revenue Officer at Cloud Theory. "However, strong efficiency scores can also indicate inventory constraints, as seen with Lexus, which present unique challenges for OEMs to navigate."

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.   

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SOURCE Cloud Theory