Growing inventory boosts July incentives, led by EV offers

July was a good example of how rising incentives are contributing to an improving sales climate.

A buoyant economy and improving stockpiles helped push light-vehicle deliveries up 15 percent to some 1.3 million in July from depressed levels a year earlier, GlobalData said in a preliminary report.

The seasonally adjusted, annualized rate of sales tallied 15.9 million last month, Motor Intelligence said, just within the range of forecasts of 15.9 million to 16.1 million but up sharply from July 2022’s rate of 13.5 million. The SAAR has now tallied roughly 15 million or more each month this year.

“The outlook for the remainder of the year remains positive into 2024,” said Jeff Schuster, head of GlobalData’s automotive practice. “Resilience in consumer purchases remains the driving factor that is supporting the industry and the economy.”

GlobalData said inventories stood at 1.9 million light vehicles on Aug. 1, up 14 percent from Aug. 1, 2022, with days’ supply still suppressed at 36 but up from 28 days a year earlier.

Among automakers that report monthly sales, Toyota, Ford and Honda continued to rebound, while U.S. sales rose for the 12th consecutive month in July at Hyundai and Kia.

Toyota Motor North America’s sales rose 8.1 percent to 191,684 for the Toyota and Lexus brands combined. Ford Motor Co. said its July sales rose 6.1 percent, with light pickups up 8.7 percent.

American Honda’s combined deliveries rose 57 percent to 111,762 at Honda and Acura.

Subaru of America’s U.S. deliveries have now rebounded for 12 straight months, with July volume jumping 21 percent to 50,389.

Deliveries rose 11 percent to 72,857 last month at Hyundai Motor America for the Hyundai and Genesis brands combined. And Kia America set a July sales record of 70,930, up 14 percent.

Also posting better sales was Volvo Car USA, with a 57 percent rise in July to 10,785 vehicles.

Among the seven automakers reporting for July, sales rose 16 percent to 711,671. The only brand posting negative numbers was Lincoln, down 4.4 percent compared with July 2022.

David Phillips contributed to this report.