Vehicle Supply and Demand Stabilizing Around a New Normal

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May 03, 2024, 11:00 ET

Toyota Continues to Lead on Inventory Efficiency, General Motors Has Three Makes in the Top 10

GRAND RAPIDS, Mich., May 3, 2024 /PRNewswire/ -- Cloud Theory, the real-time automotive data insights provider for automotive manufacturers, agencies, and affiliates is reporting in May's On the Horizon report that new vehicle inventory, although still growing month-over-month, has begun to stabilize. While new vehicle supply grew by 1% on a month-over-month basis, broader trends are indicating that the automotive industry is shifting from recovery to a more stable picture on the supply side.

New vehicle inventory reached 2.8 million in April.

Vehicle movement has largely maintained its March gains and is expected to do the same in May. Higher incentive levels and seasonal tax refunds have helped to boost demand, though stubbornly high interest rates are still tempering results on the demand front to some extent.

Underlying metrics are also pointing to a stable supply and demand dynamic, with industry turn rate settling in the low 40s and average pricing remaining in a narrow range right around $50,000.

"After a long period of recovery, we are very near to what will be the new normal of full supply." said Rick Wainschel, Vice President, Data Science & Analytics at Cloud Theory. "Inventory will not return to the 3.4M level that was in place prior to the pandemic, and that is a good thing in terms of where the industry is landing on incentives and dealer dynamics."

The top 5 makes in Cloud Theory's proprietary Inventory Efficiency Index remained in the same order compared to last month, but there were still notable shifts that occurred in April. Subaru rose from 9^th to 6^th in the rankings, with turn rate increases for Forester and Ascent helping to improve its efficiency score. General Motors had three brands in the top 10, with Buick moving up three ranks and joining Cadillac and Chevrolet. GMC, which has been in the top 10 rankings in prior months, was 11^th in April.

"Toyota and Honda deserve kudos for their ongoing strength on this important metric," said Ron Boe, Chief Revenue Officer at Cloud Theory, "but General Motors also warrants credit for efficiently moving its inventory across a wide and varied lineup."

To see more trends and forecasts on inventory, movement, segment trends, and inventory efficiency, download a copy of the May 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.

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SOURCE Cloud Theory