Industry-wide inventory challenges persist as electrified vehicles gain market share; Lotlinx customers outperform market averages in inventory management
DETROIT, Oct. 23, 2024 /PRNewswire/ — Lotlinx, the auto industry’s leading VIN-specific data company for dealership inventory management, announced today its Q3 Quarterly Vincensus Report, the most comprehensive monthly/quarterly inventory report in the industry. The report offers unparalleled insights into the current state of the automotive retail market for both new and used vehicles, inventory risk, vehicle sales, consumer preferences, and markdown/pricing strategies. Click here to access the full Q3 Quarterly Vincensus Report.
Market Outlook:
The market is navigating a complex landscape characterized by both growth opportunities and persistent challenges related to economic factors, supply chain disruptions, consumer preferences, and inventory management. While certain brands face issues with high day supply and a largely aging inventory, others are struggling with supply constraints. Notably, the demand for EVs and hybrids is on the rise, with new EV sales increasing by nearly 30% and hybrid sales growing by 21%. This trend reflects a growing consumer willingness to invest in electrified vehicles as they continue to increase new vehicle market share. As new inventory is ramped up in anticipation of the holiday season, aged inventory levels have temporarily decreased. However, effective inventory management will be crucial for a successful fourth quarter and for maintaining competitiveness in the market.
Key Findings
Electric and Hybrid Vehicle Momentum
The automotive market is experiencing a notable shift toward electrification:
- New EV sales increased by nearly 30%
- New Hybrid sales grew by 21%
- New EVs were the only engine type to see a decrease in day supply, dropping by 11 days
- Used EV day supply continued to decrease, falling by another two days QoQ to 44 days as hybrids and gas day supply remained steady.
Inventory Dynamics
The report reveals complex inventory trends across the industry:
- New Overall day supply increased to 74 days, up 6 days quarter-over-quarter and 28 days year-over-year
- New aged ending inventory decreased by 3% quarter-over-quarter but increased by 13% year-over-year
- Both new and used carryover inventory increased, with new up by 6% and used by 7%
Brand-Specific Insights
- New Cadillac carryover inventory saw a significant 25% increase, driven by a 40% rise in LYRIQ inventory
- Volvo increased the number of units sold with markdowns on new vehicles by a market-high 11%, while Chrysler decreased theirs by 4%
Lotlinx Customer Performance
The report underscores the effectiveness of Lotlinx’s solutions:
- Lotlinx customers had 1% less aged inventory than the market average for new vehicles and 3% less for used vehicles
- 44% of new vehicle brands and 93% of used vehicle brands outperformed the market as Lotlinx customers
“Auto dealers today continue to face multifaceted challenges with brand-specific inventory risk, aging carryover, and markdown strategies,” said Len Short, Executive Chairman of Lotlinx. “Our Q3 Vincensus Report highlights these complexities, such as Cadillac’s 25% increase in carryover inventory and the varied approaches to markdowns across brands like Volvo and Chrysler. To navigate these challenges successfully, dealers need more than just raw data – they require sophisticated data technology and access to reports like Vincensus, AI-driven insights, and predictive modeling. By leveraging advanced analytics, dealers can anticipate market shifts, optimize their inventory mix, and implement dynamic pricing strategies that respond to real-time market conditions.”
Click here to download the Q3 Quarterly Vincensus Report.
About Lotlinx
Founded in 2012 and based out in Peterborough, New Hampshire, Lotlinx is the automotive industry leader in VIN-specific data solutions for inventory risk management. The Lotlinx platform provides automobile dealers and manufacturers with enhanced operational control over their retail business. Leveraging state-of-the-art real-time data and machine learning technology, Lotlinx provides a precision retailing solution that enables dealers to automatically adapt to market dynamics, mitigating inventory risk through VIN-specific strategies. To learn more about Lotlinx, please visit www.lotlinx.com.
For more information
John Sternal
Merit Mile
561-362-8888 – office
954-592-1201 – mobile
[email protected]
SOURCE LotLinx, Inc.
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