Source: Gasgoo
According to foreign media reports, industry consulting firm J.D. Power and Global Data recently released a joint report said that the United States new vehicle sales are expected to increase in May, driven by demand for crossover SUVs and pickups.
Sluggish consumer demand for electric vehicles has prompted U.S. automakers to slow spending on electric vehicles and shift their focus again to higher-margin hybrids and gasoline-powered models.
The data, which is closely watched by analysts and the industry, also shows that sustained demand for electric vehicles has been gradually declining since last year, despite improvements in supply.
Image source: J.D. Power
Total new vehicle sales in the U.S. in May 2024, including retail and non-retail transactions, are expected to reach 1,446,800 units, up 2.9 percent from a year ago.
The average transaction price for a new vehicle in the U.S. is expected to be about $45,033 this month, down $1,045 from the same time last year. Average incentive spending per vehicle is up 48.1 percent from a year ago and is on track to reach $2,640. Retailers’ total single-bike profits are expected to fall 31.5 percent this month.
According to the report, 24 percent of car buyers said they are “very likely” to consider buying an electric vehicle in 2024, down from 26 percent a year ago.
“The auto industry will continue to produce more than it sells, leading to higher inventories and increasing the likelihood of higher discounts over time,” said Thomas King, president of data at J.D. Power.
“What we’re seeing right now is a ‘low water mark’ for electric vehicles, and it’s not clear how long that will last,” said Elizabeth Krear, vice president of electric vehicles at J.D. Power.
Krear added, “Consumers who refuse to buy electric vehicles cite the lack of charging stations, the price of the vehicle, the limited distance they can travel after each charge, the time it takes to charge, and the inability to charge at home or at work as reasons why they will not consider an electric vehicle.”
