US New Car Sales Rise Nearly 5% in Q1

M+ Global Updates 03/04/2024 09:53

US new car sales climbed nearly 5% in the first quarter, showcasing resilience amidst high-interest rates, although electric vehicle sales showed signs of fatigue.

Major automakers reported approximately 3.8 million units sold, amounting to an annualized rate of 15.4 million vehicles. Electric vehicle sales, at about 268,000 units, increased by 2.7% year-over-year, a considerable decline from the previous year's 47% growth rate.

Cox Automotive economist Jonathan Smoke believes that a potential Fed rate cut could benefit new car sales. Edmunds' director Ivan Drury indicates that the data reflects real challenges for electric vehicle sales as the initial pool of adopters has been tapped, leaving mainstream buyers hesitant.