General Motors Co. and Toyota Motor Corp. experienced significant growth in U.S. new car sales during the recent quarter, while Stellantis saw a decrease. This indicates that there is still a strong demand for vehicles as we approach the end of the year.
Despite challenges like strikes at Detroit automaker plants and higher financing costs, industry experts believe that the momentum will continue due to pent-up demand. However, extended labor strikes and further interest rate hikes could impact vehicle availability and affordability for some buyers.
In September, the seasonally adjusted annualized rate of sales exceeded 15.4 million vehicles, up from 13.6 million last year. Higher production volumes and improved inventory selection prompted buyers who had been delaying their purchases to finally make a move.
GM saw a 21% increase in sales during the third quarter, selling 674,336 vehicles. This brought its total deliveries for the year up by 19%. The company’s most profitable models, such as the GMC Sierra pickup and Chevrolet Silverado, experienced significant growth.
In contrast, Stellantis, the owner of Jeep and Ram, experienced a 1% decrease in overall deliveries compared to the same period last year. Jeep, in particular, saw a 4% decline in sales. The only brand within Stellantis that showed growth was Chrysler, led by the Pacifica minivan due to the popularity of its hybrid version.
GM’s strong sales may be short-lived due to the ongoing strikes at its targeted factories. Additionally, the availability of the company’s newest electric vehicle has been limited by a slow ramp-up in production.
Toyota also had an impressive quarter, with a 12% increase in sales. The RAV4 compact SUV and Corolla compact sedan were among the key contributors to this growth. Electrified vehicles, especially the hybrid RAV4, accounted for 31% of Toyota’s sales last month.
Honda, Nissan, and Hyundai also experienced strong gains in the quarter. However, one potential threat to demand is the rise in monthly payments and financing rates.
Despite these challenges, there is still a significant amount of pent-up demand. Hyundai expects to see larger sales in the fourth quarter as inventory rebounds after plant retooling. The company has also seen high demand for hybrid vehicles.
Overall, the automotive industry remains robust, with companies like Hyundai offering incentives to boost sales of their electric and hybrid models.
Honda’s deliveries in the third quarter increased by 53%, while Nissan’s sales surged 41%. Ford Motor Co. is set to release its latest numbers on Wednesday.
Denial of responsibility! Vigour Times is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
