Page 27 - Fall 2024

NADA Market Beat

Alternative-fueled vehicles continue to chip away at the market share held by ICE-powered vehicles.
Through the first 10 months of the year, alternative-fuel vehicles accounted for 19.5% of all new vehicles sold.
Conventional hybrid vehicles have made up most of the broader alternative-fuel category and have seen the
largest year-over-year sales gain. Year to date, conventional hybrid vehicles accounted for 9.8% of all new
vehicles sold, and sales have increased 34.1% from the same period last year. Battery electric vehicles (BEV)
have represented 7.8% of sales so far this year, and BEV sales volume increased by 7.9% year over year.

There will be two more Fed meetings before the end of the year, and we expect to see additional cuts to the
Fed funds rate. We currently expect two 25 basis point rate cuts, which would result in 100 total basis points of
rate cuts in 2024. We expect 100-plus basis points of rate cuts next year as well. We believe that these actions
by the Fed will lead to lower auto loan finance rates next year, which should be a tailwind for new- and used-
vehicle sales in 2025. Our outlook for total new light-vehicle sales in 2024 is 15.7 million units.

27

On The Move 2024