U.S. new-vehicle sales for the world’s major automakers rose in the second quarter on improved supply and pent-up demand, indicating that rising interest rates have not yet had a significant impact on purchases.
Vehicle production has been affected by the pandemic which has disrupted the supply of semiconductor chips and other raw materials, reducing automakers’ ability to meet rising demand for cars, trucks and vehicles sport utilities. Companies are now rushing to catch up on lost production, while supply chain issues are gradually easing.
“The job market remained healthy and consumers found a way to buy new wheels,” said Jonathan Smoke, chief economist at Cox Automotive.
Toyota Motor’s North American unit posted a 7.13% rise in U.S. sales to 568,962 units for the quarter that ended in June.
Auto giant General Motors, however, overtook Toyota in the quarter, rising nearly 19% to 691,978 units in the United States.
Compared to its peers, the Japanese automaker has struggled to deliver enough cars and trucks to dealerships on time.
Earlier in the week, FCA US, a unit of Stellantis, reported a 6% increase in total US sales.
Consultants JD Power and GlobalData estimate total U.S. auto sales will hit 4,116,600 units in the quarter ending June, up 18.2% from a year earlier .
Electric vehicles continue to see increased demand thanks to the incentives provided by the Inflation Reduction Act and the price war started by the market leader, Tesla Inc, which delivered a record number of vehicles during the quarter.
Analysts are keeping an eye on high interest rates, credit scarcity and economic uncertainty, all of which could hurt demand.
2023-07-05 04:02:43
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