According to a preliminary assessment by GlobalData, the automobile market suffered a minor setback in April, with new-vehicle sales down 3.9 percent to 1.32 million units compared to April 2023. While some automakers experienced difficulty, others observed favorable trends in sales despite the drop.
Table of Contents
1. Light Vehicle Sales in the US Fall by About 2%
Analysts predict that one fewer selling day than the previous year and lower fleet shipments will cause U.S. light vehicle sales to fall by about 2% in April 2024.
2. Hyundai and Kia Report Lower Sales
Hyundai and Kia experienced a slight dip in U.S. sales in April, despite an increase in electric vehicle (EV) and hybrid deliveries, indicating heightened market competition as inventories rise.
Hyundai:
- Sales fell 3% to 68,603 units.
- Top models faced double-digit declines: Tucson (-16%), Santa Fe (-11%), and Elantra (-24%).
- Electrified vehicle sales surged 26%, with the Ioniq 5 EV up 59% and overall hybrid deliveries up 29%.
Kia:
- Sales decreased 3.6% to 65,754 units, marking the fifth consecutive monthly decline.
- Car sales were significantly weaker, with the K5 midsize sedan dropping to 333 units from 5,035 a year earlier.
- Set a monthly EV sales record of 3,623 units, with EV6 volume increasing 65% to 2,051 units.
Genesis:
- Sales fell 5.9% to 5,508 units after 17 consecutive months of growth, primarily due to lower GV70 volume.
3. Electric Vehicle Market
Kia reported a monthly record for EV deliveries with 3,623 units. EV6 volume jumped 65% to 2,051 units, and the new EV9 tallied 1,572 units last month.
4. Market Overview:
The overall market is influenced by rising inventory, improved selection, and increased discounts, particularly on large pickups and electric vehicles. However, elevated new-vehicle prices, high interest rates, and decreasing used-vehicle values are restraining growth.
After a 13% increase to 15.6 million vehicles in 2023, U.S. sales are projected to rise more moderately to 15.7 million to 16.1 million in 2024.
5. Expert Insights
Despite high interest rates and elevated vehicle prices, consumers remain resilient,” said Charlie Chesbrough, Senior Economist at Cox Automotive. “Sales growth may be sluggish, but growth continues. And we expect these conditions to persist throughout the year.”
S&P Global Mobility has raised its outlook for North American light-vehicle production for 2024 by 1.5% to 16 million, citing steady consumer demand and easing supply chain bottlenecks.
