By Dave Bean, Editor, FMW
January 3, 2024
When the final December 2023 figures come in, sales of fleet vehicles are predicted to ride the cresting wave of overall new vehicle sales, which have improved markedly from 2022. This after fleet sales were negatively affected in October and November 2023, chiefly a result of the UAW strike against the Big Three automakers in Detroit.
“With the strike now in the rearview mirror, December is expected to show a return to stronger fleet activity, and these sales could have a big impact on the month’s final tally,” said Charlie Chesbrough, senior economist at Cox Automotive.
Overall sales of new cars and trucks were surprisingly robust in 2023, bolstered by an easing of supply chain issues which resulted in improved vehicle stock, deliveries, and incentives. According to Kelley Blue Book, this represents a nearly 12% improvement over 2022 sales figures.
Charlie Chesbrough
Chesbrough added: “December is generally a strong month for new-vehicle sales as holiday shoppers look for year-end deals, and this year will be no exception. With supply much higher now and incentives higher as well, this December is expected to finish significantly better than last year. But high vehicle prices and high interest rates remain the industry’s Grinch right now, and that trend will continue into next year.”
According to Cox Automotive, the final 2023 new vehicle sales forecasts to be:
- GM: 609,437
- Toyota: 604,642
- Ford: 457,816
- Hyundai: 405,760
- Stellantis: 331,266
For Hyundai, the year has been particularly impressive, where they are predicted to surpass Stellantis in US sales, fueled largely by their Genesis, Hyundai, and Kia brands. It is worth noting that Stellantis continues its strategy to deemphasize sales volume in favor of increased revenue per unit sold. Also worth noting are strong year-over-year vehicle sales by Honda, Nissan, and Tesla.
Looking at 2024, the Cox Automotive team expects:
- Weak overall economic growth
- Greater stock of new vehicles available on dealer lots
- No longer a seller’s market
- New vehicle shoppers take back control
For a further look into the Cox Automotive Sales Forecast, click here.
