Edmunds forecasts U.S. sales of 1.12 million new cars and trucks in January, which would be a nearly 30 percent drop from December.

“In January, automakers are expected to pull the reins in on the more generous incentive programs that we saw at the end of 2017,” said Jessica Caldwell, executive director of industry analysis at Edmunds. “However, it’s typical to see a slowdown at dealerships in January following the high-selling holiday months. This isn’t necessarily a solid indicator of the direction that the year is headed in terms of overall sales.”

Severe winter weather in many parts of the country also is playing a role in the sluggish January numbers, according to Edmunds.

“The bomb cyclone that tore through the East Coast at the beginning of the month certainly didn’t help an already slower sales month,” Caldwell added.

The January forecast reflects an estimated seasonally adjusted annual rate (SAAR) of 16.7 million units.