This analysis is updated monthly to provide readers with the most current state of US vehicle inventory.

Total advertised new-vehicle inventory dipped 0.5% month over month (MoM) to 2.77 million units in January, essentially holding near the level seen at the end of 2025.

With January often reflecting a reset in shopping activity after the holidays, the bigger story this month is less about overall volume and more about how inventory is aging and how quickly it’s converting to sales.

Hybrids continue to build, EVs continue to normalize

Hybrid inventory moved sharply higher, up 6.9% MoM and 14.4% year over year (YoY) to 306,461 units.

Meanwhile, EV inventory continued to contract, decreasing 2.0% MoM and 29.3% YoY to 101,851 units, extending the Q4 2025 downtrend and reinforcing the idea that the EV market has been working through excess availability via lower pricing, incentives, and mix changes.

Model-level movements to watch

At the nameplate level, a few changes stood out:

• Hyundai Ioniq 5: +86% YoY
• Chevrolet Equinox EV: +42% YoY
• Ford Mustang Mach‑E: Increased 15% MoM, a notable near-term build after prior softness.
• Lexus RZ climbed 194% YoY, one of the largest relative increases among EVs.

Supply, aging, and velocity: Demand cooled in January

Days’ supply increased from 70 to 97 (+27 days), a sizable shift that likely reflects a slower sales pace in January rather than a sudden surge of inventory. Despite the days supply jump, average age of inventory held flat at 77 days, suggesting the market did not materially worsen on “staleness,” even as turn rates slowed.

However, days advertised before sale increased from 74 to 76 days and has now risen steadily since October, indicating that listings are taking longer to convert and that dealers may need to stay disciplined on merchandising and price positioning as spring approaches.

Pricing: Modest declines, tighter discounts

Pricing softened slightly in January with the average MSRP falling $294 to $50,687; average list price down $198 to $47,238; and the average discount decreasing $94 to $3,450. These modest changes reflect a shift toward lower-priced models and dealers staying more disciplined rather than enacting broad price cuts.

Overall, this looks less like aggressive clearing and more like incremental price recalibration, with discounting lessening even as days’ supply rose. With inventory aging and days’ supply rising, dealers are relying on targeted incentives and selective markdowns, especially as hybrids remain strong and EVs require sharper pricing to move.

Chart 1 below shows the trend of vehicle pricing relative to MSRP. While the long-term trend is up, the last three months (Nov. - Jan.) have shown that a steady 54% of inventory is listed below MSRP.

Conclusion

January’s data shows stable inventory but slower sales, with hybrid inventory continuing to rise and EVs normalizing. Pricing is adjusting gradually, with smaller discounts and lower MSRPs, indicating a measured response to slower demand. Going forward, aligning pricing and incentives to local market conditions will be key, especially for EVs where affordability and competitive offers drive sales.

With S&P Global Mobility's vehicle inventory data, automakers can identify market opportunities and risks, optimize incentive spending, refine production strategies, and stay ahead of the competition in a rapidly changing landscape.

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