November marked a notable 6.5% increase in new vehicle sales across the United States, reflecting a strong performance despite rising costs. Automakers sold 67,000 more vehicles than in October, demonstrating resilient consumer demand even as the average listing price climbed by 1.8% to $48,978. This price surge represents a 2.8% increase compared to November 2023.
Additionally, the average transaction price for new vehicles rose by $720 over the previous month, settling at $48,273. These figures highlight the willingness of consumers to pay higher prices, driven by market dynamics and evolving inventory levels.
Inventory Reaches a New High, but Supply Tightens
Data from Cox Automotive reveals that U.S. new vehicle inventory hit its highest level of the year at 3.15 million units at the start of November. Despite this increase, the average days’ supply—an industry metric that gauges how quickly inventory moves—dropped by 5.9% to 85 days.
While some automakers have successfully maintained lean inventories, others continue to grapple with excess stock. Lexus and Toyota remain industry leaders in inventory management, with just 31 and 36 days of supply, respectively. Honda (62 days), BMW (64 days), and Subaru (66 days) also boast tight supply chains, ensuring efficient inventory turnover.
Overstock Challenges Persist for Some Brands
At the other end of the spectrum, brands like Jaguar, Lincoln, Jeep, and Ram struggle with inventory levels well above the industry average. Jaguar, for instance, has been holding stock for over 170 days—a reflection of the brand’s ongoing transition to an EV-only lineup by 2026 and a lack of new model launches.
Lincoln, despite achieving a 28.4% sales increase in the first 11 months of 2024, faces similar challenges, with inventory levels twice the industry average.
Jeep and Ram, both under the Stellantis umbrella, have also been plagued by high inventories. However, Stellantis has made strides in addressing these issues. Ram’s 128-day supply in November, while still high, marks progress from its inventory levels earlier this year, which exceeded double the industry average.
High Inventories Across Other Brands
Other automakers, including Mini, Buick, Ford, and Audi, also face significant inventory surpluses, with supply levels ranging from 113 to 129 days. These figures underscore a widening gap between brands effectively balancing supply and demand and those still navigating the complexities of overstocked lots.
Looking Ahead: A Divided Market
As the auto industry closes out the year, it faces a divided landscape. Brands like Lexus and Toyota exemplify inventory efficiency, leveraging lean supply chains to drive sales at premium prices. Conversely, automakers like Jaguar, Lincoln, and Stellantis’ Jeep and Ram must continue their efforts to align production with demand.
The coming months will likely see a greater focus on inventory management strategies, particularly for automakers grappling with high days’ supply. For the industry as a whole, balancing rising consumer costs with supply chain efficiency will remain a critical challenge heading into 2025.
