General Motors (GM.N.) retains its title of top-selling carmaker in the United States in 2023, edging out competitor Toyota Motor (7203.T), as easing supply constraints and steady demand propel the sector to its most extraordinary year since the epidemic.
Despite an expensive auto strike, the Detroit carmaker reported 2023 U.S. new vehicle sales of 2,594,698 units, up 14.1% over last year, while Toyota’s yearly sales grew 6.6% to 2,248,477 vehicles.
According to estimates from consultancy Cox Automotive, automakers are predicted to sell 15,499,224 automobiles in the United States in 2023, the most since 2019, when the sector recorded sales of 17,044,011 vehicles.
The sales rebound comes as automakers increase output to meet the continued demand for new vehicles in 2023, while some analysts worry that rising loan rates will dampen demand this year.
“High vehicle prices and high interest rates remain the industry’s Grinch right now, and that trend will continue into next year,” said Cox.
Car dealers had to provide hefty incentives and discounts in December to clear older inventory after two years of holding back on promotions, indicating that demand is softening.
“This is the third year in a row that U.S. consumers have spent more than $500 billion on new vehicles,” J.D. Power said in research last month.
Electric vehicles have also captured a more significant percentage of consumer spending. Toyota reported on Wednesday that electric vehicle sales increased by 30.4% to 657,327 cars, accounting for 29.2% of total U.S. sales.
According to Cox, total EV sales in the United States are predicted to represent approximately 8% of total car sales in 2023, climbing to around 10% this year. However, researchers believe that rising borrowing rates would also hurt EV demand.
“EV sales are likely to continue to improve, but not at the astronomical rate seen in years past,” AutoForecast Solutions stated in research.
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