EV Sales Growth Slows; Market Leader Tesla Stalls

Electric vehicle (EV) sales growth in the U.S. continues to slow, according to sales data analyzed by Kelley Blue Book. In the first quarter of 2024, Americans bought 268,909 new electric vehicles, according to Kelley Blue Book counts. EV share of total new-vehicle sales in Q1 was 7.3%, a decrease from Q4 2023.

While annual EV sales continue to grow in the U.S. market, the growth rate has slowed notably. Sales in Q1 rose 2.6% year over year, but fell 15.2% compared to Q4 2023. The increase last quarter was well below the previous two years.

In Q1 2023, EV sales volumes were up 46.4% year over year and 15.5% quarter over quarter. In Q1 2022, EV sales were higher by 81.2% year over year and 20.4% higher than the previous quarter.

“Electric vehicle sales in the U.S. declined during Q1 2024 – the first quarter-over-quarter downturn since Q2 2020,” said Stephanie Valdez Streaty, director of Industry Insights at Cox Automotive.

“As anticipated, Tesla’s sales took a hit, influencing the overall market dynamics. However, a few brands saw significant EV sales increases, achieving over 50% year-over-year growth. As noted in January, we are calling 2024, ‘the Year of More’. More new products, more incentives, more inventory, more leasing and more infrastructure will drive EV sales higher this year. Even so, we’ll continue to see ups and downs as the industry moves towards electrification.”

Analysts at Cox Automotive had expected a slowdown in EV sales growth. Segment growth typically slows as volume increases. This is certainly true with the market leader Tesla, which reported notably lower global deliveries in Q1 2024.

According to Kelley Blue Book estimates, Tesla sales in the U.S. were down 13.3% year over year – well below the typical double-digit growth that had become routine with the Tesla brand. Tesla’s share of the electric vehicle market in Q1 2024 was 51.3%, down from 61.7% one year earlier.

Though the overall year-over-year growth was minimal in Q1, nine manufacturers recorded more than 50% year-over-year growth in EV sales – BMW, Cadillac, Ford, Hyundai, Kia, Lexus, Mercedes, Rivian and Vinfast.

Q1 2024 EV SHARE OF TOTAL BRAND SALES
Go to coxautoinc.com (Q1-2024-EV-share-to-brand-sales-revised-chart subpage)

Notably, lower prices have supported EV sales volume in the U.S., particularly for key Tesla models. The average transaction price for a new EV in Q1 was $55,167, a 9.0% decrease compared to Q1 2023 and down 3.8% quarter over quarter. Tesla’s average transaction price was $52,315 in Q1, down roughly 13.5% year over year. However, lower prices did not generate higher volume.

Many automakers have followed Tesla’s lead and slashed prices. Incentive spending on EVs has increased notably in the past year, another sign of slowing demand. Leasing, too, has increased. In Q1, roughly 27% of all EVs were leased, more than double from the year before. With leasing, many buyers can qualify for the full $7,500 incentive the Inflation Reduction Act offers.

One bright spot in Q1: Strong EV sales from luxury makers, suggesting the EV market continues to be luxury-driven. Cadillac achieved a 499.2% year-over-year increase in electric vehicle sales due to robust sales of its Lyriq model. At Mercedes, EV sales were up 66.9%. BMW posted a 62.6% increase in EV sales compared to Q1 2023. At Audi, Q1 EV sales grew 28.8% year over year.

Meanwhile, sales of the most affordable EV in the U.S. – the Chevy Bolt – have been temporarily halted. Bolt sales fell 64.3% year over year in Q1, hitting just 7,040, as production stopped. A new version of the Bolt is expected to launch in 2025. On the non-luxury side, Ford achieved an 86.1% year-over-year increase in Q1 EV sales with the second-highest EV sales volume behind Tesla.

Cox Automotive forecasts EV sales in the U.S. to increase year over year in 2024, making this year the best year ever for EV sales. Analysts expect EV sales to reach roughly 10% of the market by the end of the year, up from 7.3% in the first quarter.

Originally posted by Cox Automotive- https://www.coxautoinc.com/market-insights/q1-2024-ev-sales/#:~:text=Electric%20vehicle%20(EV)%20sales%20growth,a%20decrease%20from%20Q4%202023

Stellantis sales drop 10% in first quarter

Stellantis NV sales dropped 10% in the first quarter compared to last year, with its Ram and Dodge brands suffering the steepest sales declines.

The transatlantic automaker, which also offers Chrysler, Jeep, Fiat and Alfa Romeo in the United States, sold 332,540 vehicles in the first three months of the year compared to 368,327 a year ago. Bright spots were Jeep, which saw a 2% uptick due to several popular vehicles including its plug-in hybrids, as well as a 9% rise for Chrysler sales thanks to its Pacifica minivan.

“As Jeep prepares to deliver its first fully electric vehicle, the Jeep Wagoneer S, in the U.S. in the second quarter, the brand saw significant growth across its portfolio in Q1, and the Jeep Wrangler 4xe and the Jeep Grand Cherokee 4xe are currently ranked the No. 1 and No. 2 best-selling hybrids in the country,” Jason Stoicevich, Stellantis head of U.S. sales, said in a statement. “2024 will be a transformative year for the company and our consumers, and our focus and commitment remain on delivering best-in-class products across Stellantis’ diverse portfolio.”

The sales drop-off was in contrast to most other automakers, which reported strong year-over-year sales increases this week. However, General Motors Co., Kia Corp. and Tesla Inc. had declines. GM reported a sales drop of 1.5% year-over-year to 594,233 in the first quarter.

In the first quarter of 2023, Stellantis also witnessed a 9% decline in sales. For all of 2023, however, it saw just a 1% sales decline in the United States compared to 2022.

Stellantis highlighted the healthy sales of its plug-in hybrids for the quarter, which increased 82%. The automaker noted that its Jeep Wrangler 4xe, Jeep Grand Cherokee 4xe, Dodge Hornet R/T and Chrysler Pacifica Hybrid took four of the five top spots for best-selling hybrids in the country as of last year. The company is getting set to launch eight fully battery-powered vehicles in the United States by the end of 2024.

Jeep’s sales were positive thanks to healthy sales of its Compass, Renegade, Wagoneer and Grand Wagoneer. Sales of the popular Grand Cherokee and Wrangler models were about flat.

Ram saw steep sales declines, including of its ProMaster vans, but noted the 2025 Ram 1500 is arriving at dealerships now. Dodge saw sales declines of its Charger and Challenger — which ended production last year — and Durango SUV, though it is releasing an all-new electrified Charger in the coming months.

Originally published by The Detroit News https://www.detroitnews.com/story/business/autos/chrysler/2024/04/03/stellantis-sales-drop-10-in-first-quarter/73179553007/

RVIA’s March 2024 Report Reveals 9% RV Shipment Increase Through First Quarter

The RV Industry Association‘s (RVIA) March 2024 survey of manufacturers revealed that total RV shipments concluded the month with 32,243 units, marking a 1.2% increase compared to the 31,869 units shipped in March 2023.

Additionally, RV shipments have increased 9.3% compared to the same timeframe last year, totaling 85,941 units through March.

RVIA President & CEO Craig Kirby highlighted the growth of RV shipment. “Our cautious optimism for the year continues as RV shipments are up over 9% through the first quarter of 2024. The strong desire to get out and RV continues with our latest survey data showing that 89% of RVers have taken an RV trip in the past year and 26 million Americans planning to take an RV trip this spring. Millennials, many with young families, are showing the greatest interest in RVing with 38% of Millennials saying they would like to take an RV trip in the next year,” Kirby said in a News & Insights report of RVIA.

In detailed shipment categories, towable RVs, predominantly conventional travel trailers, saw a 5.9% increase from last March, totaling 29,018 shipments. Conversely, motorhomes experienced a decline, dropping 27.8% to 3,225 units.

Park Model RVs also saw a decrease, with shipments falling 36.5% to 343 units in March compared to the same month the previous year.

In a February 2024 report, the RVIA reported a 17.8% increase in RV shipments compared to the previous year, with 31,024 units shipped. This rise was particularly in the towable RV category, including conventional travel trailers, which experienced a 24.4% surge in shipments to 26,984 units. Additionally, motorhomes declined, with shipments dropping by 12.5% to 4,040 units. 

RVIA advocates for a $140 billion sector, representing over 500 manufacturers and component suppliers. These members produce 98% of all RVs manufactured in the United States and approximately 60% of global RV production. It serves as a source of research, data, and analysis concerning the RV industry.

The association also oversees compliance with various safety and quality standards, including plumbing, heating, fire safety, and electrical systems.

To learn more about RVIA’s 2024 March Shipment Report, visit rvia.org.

Originally published by Modern Campground https://moderncampground.com/usa/rvias-march-2024-report-reveals-9-rv-shipment-increase-through-first-quarter/

May Newsletter

As another month rolls by, our industry is faced with a new, and potentially even more complex set of concerns.
 
For much of the last 3 years, dealers have seen credits on their income statements when it came to floor plan expense. With inventory levels continuing to rise, dealers are feeling the impact of the costs associated with the increased values of today’s vehicles and the growing numbers of days in inventory. To compound this, dealers across the country are sitting on thousands of unsold EV’s and some are struggling to come up with ways to move this inventory without taking a massive hit on their front-end gross. We have successfully created strategies within dealers’ reinsurance positions to offset most, if not all of their floor-plan expense. Let us know if you would like to explore a creative solution. 
 
Another issue dealers are, and will continue to face for the foreseeable future, is the compounding negative equity in the market. Per COX Automotive, the average negative equity is over $6,000 per vehicle. This will lengthen the trade cycle, compress front-end gross and limit opportunities for F&I. There are few tools to properly deal with this, and even fewer companies who know how to guide dealers through this. We are thankful for our partnership with AutoPayPlus whose program accelerates customers equity and can shorten the length of a customer’s loan term by 10% or more. Additionally, when a deal is enrolled with AutoPayPlus, we see an average increase of .9 products per deal, and an additional $512 in PVR. We would love to show you how to improve your customer’s equity position as well as increase your overall profitability, today, tomorrow and for years to come.
 
Lastly, there are a lot of people in our space who talk big but perform small. Although we may not shout it from the rooftops, we are extremely proud of the work we do for our dealers and the additional profits we help them generate, and keep. If you want to learn more about what it is like to have someone truly represent your full interest, please reach out to us to see if we are a good fit for you.
 
Sincerely,
 
Bob and Ryan

IN THE NEWS
Fed leaves rates unchanged, flags ‘lack of further progress’ on inflation
Is IRS Abusing its Authority in Micro-Captives Investigations?
EV Sales Growth Slows; Market Leader Tesla Stalls
Stellantis sales drop 10% in first quarter
RVIA’s March 2024 Report Reveals 9% RV Shipment Increase Through First Quarter

Events we will be attending: 
NAMAD – https://web.cvent.com/event/edcd733e-ea51-4261-842b-30b68f704934/summary
RVDA – https://www.rvda.org/Convention
F&I Product and Reinsurance Conference – https://www.fandi-conference.com/

Good luck and Good Selling!

Link to full Newsletter https://mailchi.mp/advdealer.com/may-newsletter-wwcephsrkn