(Reuters) – JD Power and Globaldata Industrialists said in a joint report on Thursday.
However, the rise in sales is not sufficient to compensate for the decrease in the total profit for each retail unit, which is expected to decrease by 11.8 % of February 2024.
Why is this important
Despite the discounts of manufacturers and high sales sizes, the growing agents’ stocks and increased competition have pressed the profitability of retailers.
Main quote
“The ability to withstand vehicle costs is still a challenge to the industry, which is the main reason behind not strengthening the frequency of sales, despite its strengthening, to prenatal levels,” said Thomas King, Head of Data and Analysis Department at JD Power.
In numbers
The average price of retail transactions for new vehicles was high and headed about $ 44,619, an increase of $ 71 from February 2024.
The average incentive spending for each vehicle is expected to grow 22.8 % from last year.
The total sales of new vehicle in February 2025, including retail and non -retail transactions, are expected to reach 1.24 million, an increase of 3.5 % over the previous year. What next
The report said that it is expected that the increase in sales led by the increased discounts to March and beyond will continue.
The report added that factors such as changes to electric vehicle tax credits, fuel consumption regulations and import definitions can also affect the market.
(Participated in Ishwarya Jain in Bengaluru; editing Shrea Bisas)