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U.S. vehicle sales are expected to have faced challenges in the third quarter due to economic uncertainties and higher Interest rates and prices. Forecasts indicate a potential 2% decline in sales compared to the same period last year, totaling around 3.9 million vehicles sold. Analysts believe that while the recent rate cut by the Federal Reserve is a positive step, it may not immediately boost auto sales for the remainder of the year.
The overall new vehicle market in 2024 has been volatile, with affordability remaining a significant barrier to stronger sales. Despite some improvements, the market continues to be costly for many consumers, with the average transaction price for a new vehicle standing at $47,870. Honda Motor and Ford Motor are expected to see sales growth in the third quarter, while Stellantis, Toyota Motor, and BMW are projected to experience declines.
Electric vehicle sales are on the rise but still slower than anticipated. EV sales are expected to increase by about 8% in the third quarter compared to a year earlier. Although Tesla has been a dominant player in the EV market, its market share is predicted to drop below 50% for the second consecutive quarter. Incentives for EVs, including a federal credit of up to $7,500, are helping drive sales despite some challenges.
Overall, U.S. vehicle sales are expected to face continued uncertainty in the coming months, with affordability and Market Dynamics playing critical roles in shaping the industry’s performance.
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Emily Jensen, graduated from the London School of Economics and Political Science (LSE) in the UK in 2015 with a degree in Economics. She specializes in financial markets and international trade. After graduating, she worked as an analyst at an investment bank in London, where she developed expertise in global economic trends. She later transitioned into consulting, focusing on fintech ventures and providing insights into global economic developments. Emily is passionate about the intersection of finance and technology and aims to drive innovation in the financial sector.