New vehicle sales in the U.S. rose 5.1% year over year in the first quarter of 2024, according to recently released data from Motor Intelligence.
That growth comes as dealership inventories are finally nearing pre-pandemic levels. Sales of electric vehicles, however, have slowed significantly.
But are these national trends being reflected at Baton Rouge auto dealerships, as well?
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Eric Lane, partner at Gerry Lane Enterprises, says his dealerships outpaced the 5.1% first-quarter national sales growth.
In the first quarter of 2023, Gerry Lane’s Cadillac, Chevrolet and GMC dealerships sold a total of 791 new vehicles. In the first quarter of 2024, those same dealerships sold 850 new vehicles—a 7.5% year-over-year increase. The Chevrolet dealership saw the most growth, jumping from 327 new vehicles sold to 387.
Inventory levels at Gerry Lane’s dealerships are also strong—Lane says his full lots remind him of “the good old days.”
Lane is optimistic that sales will continue to grow for the remainder of 2024, but he is keeping a close eye on interest rates.
“They say they’re going to decrease interest rates three times this year,” Lane says. “If that ends up being the case, our business is going to increase.”
Nick Pentas, general manager and co-owner of Mercedes-Benz of Baton Rouge, says his dealership also outpaced the 5.1% first-quarter national sales growth.
New vehicle sales at Mercedes-Benz of Baton Rouge were up 10% year-over-year in the first quarter of 2024. Pentas says inventory levels at the dealership are “looking good” but have not quite returned to where they were pre-pandemic.
Electric vehicle sales at Mercedes-Benz of Baton Rouge, though, were down 75% from last year, matching national trends. In 2023, 11% of the dealership’s first-quarter sales were electric vehicles, compared to 2.5% this year.
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Looking ahead, Pentas hopes sales will continue to grow for the rest of 2024.
“I do forecast that we’re going to have growth from 2023 just based on inventory and supply,” Pentas says. “We’re hoping that we can stay in that 10-15 percent growth range.”
This story originally appeared in an April 9 issue of Daily Report. To keep up with Baton Rouge business and politics, subscribe to the free Daily Report e-newsletter here.