Inventory Takes a Seasonal Dip, Expected to Return to Growth Pattern

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Feb 08, 2024, 10:30 ET

Non-Luxury OEMs Reassert Themselves on Inventory Efficiency, Cadillac Defies Trend

GRAND RAPIDS, Mich., Feb. 8, 2024 /PRNewswire/ -- Cloud Theory, the real-time automotive data insights provider for automotive manufacturers, agencies, and affiliates, is reporting in this month's "On the Horizon," that new vehicle inventory took a step back from its ongoing recovery, dropping from 2.64M in December to 2.53M in January. This interrupts an 11-month run of growth, during which counts grew by more than 1 million. Since inventory also declined in January 2023 amid its long-term revival, this points to a seasonal dip rather than a shift in the longer-term market trajectory.

Inventory Efficiency Index Scores January 2024

With model year changeovers and end-of-year deals in the rear-view mirror, new vehicle movement also dipped back into the stable range near 1 million per month that has ruled the day for most of the past year. February forecasts point to a perpetuation of that level over the next month.

"January always represents a bit of an inventory and sales respite after MYCOs and end-of-year deals run their course, and this is true as 2024 kicks off," says Rick Wainschel, VP of Data Science & Analytics at Cloud Theory. "The dynamics leading to a more supply-oriented marketplace are still in place, however, which will push OEMs to focus on building demand in order to compete more effectively."

Cloud Theory's proprietary Inventory Efficiency Index reflects the post-holiday decline for luxury OEMs, with Lexus, Land Rover, and BMW dropping substantially in score and at least one rank. On the other hand, Cadillac bucked this trend and moved back into third place.

"After the luxury OEMs played their hands in December, January is shaping up to be a return to a more typical pattern in terms of inventory efficiency, with Toyota, Honda, and Kia at the top of the rankings once again," said Ron Boe, Chief Revenue Officer at Cloud Theory. "Cadillac is an exception to the luxury trend, however, and strong showings by Chevrolet and GMC point to a good start to the year for General Motors."

To see more trends and forecasts on inventory, movement, segment trends, and inventory efficiency, download a copy of the February 2024 On the Horizon report here.

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