Source: Gasgoo Author: Ramy
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According to Reuters, on January 26, a joint report released by industry consulting firms J.D. Power and GlobalData showed that U.S. new car sales in January are expected to fall 1.5% from the same period last year due to seasonal sales slowdown and signs of cooling demand for electric vehicles.
According to the joint report released by J.D. Power and GlobalData, total U.S. new-vehicle sales in January, including retail and non-retail transactions, were approximately 1,087,900 units.
Image source: Chevrolet
In order to take full advantage of year-end sales and incentives, most U.S. consumers tend to buy cars in December each year, which in turn reduces car sales in January of the following year, Reuters noted.
In January this year, U.S. consumers are expected to spend nearly $37 billion on new cars, down 2 % from the same month last year . Incentive spending per vehicle was about $2,346 for the month, up about 74 % from a year ago. The average transaction price (ATP) of a new vehicle is expected to be $45,106, down $1,636 from the same period in 2023.
In addition, the share of retail sales of electric vehicles in the US is expected to fall to 8.1 % in January from 9.2 % at the end of 2023, as a result of the US government’s new tax credit regulations for electric vehicles that went into effect earlier this month. As previously reported by Bloomberg, data on the U.S. fueleconomy.gov website shows that the stricter standards that went into effect on 1 January this year reduced the number of EV models eligible for tax credits to 13 from about 24, according to a previous report by Bloomberg.
Thomas King, president of J.D. Power’s data and analytics division, said, “Many electric vehicles are no longer eligible for U.S. government subsidies as of Jan. 1, so many consumers decided to buy an electric vehicle last December.”
