Macro Flash Report

Automotive Sector

Takeaway:

Auto sales disappointed in January, but the recent drawdown in inventories should lead to a temporary uptick in steel consumption from the sector. Affordability will continue to be a significant concern this year leading to fits and starts in auto sales.

 

Wards Total Vehicle Sales

In January, Wards Total Vehicle Sales dropped to 15.60m from December’s 16.80m sales, missing the market expected decline to 16m. This marks the lowest number of sales since August, with both truck and car sales diminishing.

 

Auto Inventories & Production

Auto Inventories fell to 206.88 in December from 221.47 in the prior month. This marks the second consecutive month of declines and the lowest level since September 2023.

Auto Production decreased to 102.2 from December’s 118.2 level. This marks the third consecutive decline and the lowest level since September 2021.