U.S. Vehicle Sales (November 2024)
Andrew Foran, Economist | 416-350-8927
Date Published: December 4, 2024
- Category:
- U.S.
- Data Commentary
- Commodities & Industry
November U.S. vehicle sales highest in over three years
- U.S. vehicle sales rose 1.5% month-on-month (m/m) to 16.5 million (annualized) units in November – well above consensus expectations for 16.1 million units.
- Unadjusted sales volumes were 1.36 million units or 10.1% above year-ago levels. The average daily selling rate (DSR) was 52,310 – calculated over 26 days – 5.8% above November 2023's 49,423 daily rate calculated over 25 days.
- Passenger vehicle sales fell 1.8% year-on-year (y/y) while sales of light-trucks increased by 13.0% y/y. Light-trucks accounted for 82% of last month's sales, slightly higher than its year-ago 80% share.
Key Implications
- Light vehicle sales surprised to the upside for a second consecutive month in November, coming within striking distance of the pre-pandemic pace of sales for the first time since mid-2021. Recent strength has been primarily supported by the retail segment (+7.4% y/y in November) while the fleet segment remained relatively weaker (-3.6% y/y). With uncertainty related to the U.S. election now behind us, incentives continuing to rise, and financing rates falling by roughly half a percentage point since June, consumers are likely beginning to exercise some of the pent-up demand from prior years.
- It is also possible that some of the recent strength in vehicle sales came from replacement demand related to hurricane activity in the southeast over the past few months. For this reason, it is possible that we may see some moderation in sales growth through the coming months, but sales are still expected to trend higher through the coming year as financing costs continue to fall and vehicle affordability improves.
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