Aug 29 (Reuters) - New vehicle sales in the United

States are projected to rise over 4% in August from a year ago,

partly boosted by the Labor Day weekend falling within the

reporting period, according to a joint report by industry

consultants J.D. Power and GlobalData ( GLDAF ) on Thursday.

On a seasonally adjusted annualized rate (SAAR) basis, which

adjusts for Labor Day timing, sales are expected to stay roughly

flat at 15.3 million units.

WHY IT IS IMPORTANT

Discounts from dealers and manufacturers are rising, while

average transaction prices are falling, leading to a slight SAAR

growth in August.

The industry is also grappling with the effects of reduced

leasing activity from three years ago. Fewer leases signed back

then mean fewer lessees are returning to dealers to purchase or

lease a new vehicle.

J.D. Power on Wednesday forecast a slower-than-expected

growth rate for EV sales in the first half of 2024 amid

competition in the market for gasoline-powered models.

BY THE NUMBERS

Total new vehicle sales for August, including retail and

non-retail transactions, are expected to be up about 4.2% to

1,437,954 units from a year ago.

Transaction prices are trending towards $44,039, down $1,895

from a year earlier.

Total retailer profit per unit - which includes vehicles

gross plus finance and insurance income - is expected to be

$2,249, down 33% from August 2023.

KEY QUOTES

"An increase in the transition to EVs will take time, with

several interdependent variables affecting adoption," said

Elizabeth Krear, vice president, electric vehicle practice at

J.D. Power.

"The global demand recovery is showing signs of slowing,

with lower volume tempering the outlook for the rest of the

year," Jeff Schuster, vice president of research, automotive at

GlobalData ( GLDAF ).