May 23 Reuters New vehicle sales in the United States are projected to rise in May from a year earlier, helped by demand for crossover SUVs and pickup trucks, according to a joint report by industry consultants J.D. Power and GlobalData on Thursday.

WHY IT IS IMPORTANT

Automakers in the United States have been shifting their focus back on highermargin hybrids and gasolinepowered models as choppy demand for electric vehicles prompted them to pare back their ambitions for such units.

The numbers, closely watched by analysts and the industry, also shows how sustained demand for EVs has progressively fallen since last year despite better supply.

BY THE NUMBERS

Total new vehicle sales for May 2024, including retail and nonretail transactions, are expected to reach 1,446,800 units, a 2.9 jump from a year ago.

Average transaction prices in the month are expected to be about 45,033, down 1,045 from a year ago. Average incentive spend per vehicle has grown 48.1 from a year ago and is on track to reach 2,640.

Total retailer profit per unit is expected to decline 31.5 in the month.

According to the report, 24 of shoppers said they were very likely to consider purchasing an EV in 2024, which is down from 26 a year ago.

KEY QUOTES

The industry continues to produce more vehicles than are being sold, leading to rising inventories and increasing the likelihood of elevated discounts as the year progresses, said Thomas King, president of the data and analytics division at J.D….