Oct 3 (Portal) – General Motors Co (GM.N) outperformed Japanese automaker Toyota Motor Corp (7203.T) in the third quarter in the United States, data showed on Monday, but analysts and investors are worried the the economic picture darkened will lead to a decline in car sales.
So far, a shortage of cars due to supply disruptions combined with a preference for private transport has meant consumers are willing to spend more to largely protect profits from automakers and car dealers who have withdrawn rebates.
But analysts are now warning that demand could lose momentum in the coming quarters as rising interest rates keep consumers from paying more for cars and trucks in the coming months.
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“We’re cautiously optimistic about the future. There’s a lot of negative consumer sentiment out there, so we’re obviously concerned about that,” Hyundai Motor North America chief executive officer Randy Parker said in an interview after the automaker reported one Vehicle sales up 3%.
GM said it sold 555,580 vehicles in the quarter ended September, up 24% from last year when inventory shortages impacted sales. Toyota’s sales fell by 7.1% to 526,017 vehicles in the same period.
GM sold Toyota about 80,000 vehicles in the first nine months of the year. Toyota surpassed GM in sales by about 110,000 vehicles in 2021, the first time GM hasn’t led the US auto industry in sales since 1931.
Referring to the 2021 win, Toyota President Akio Toyoda told dealerships last week he performed a “happy dance” in my office when the numbers were announced.
GM, whose shares are up 2.9% in afternoon trade, added that it will ramp up production of its Chevrolet Bolt electric models in response to higher demand. Continue reading
Shipping finished vehicles to consumers proved to be another problem for some companies. Shares of Tesla Inc (TSLA.O) fell on Monday after the company sold fewer vehicles than expected in the third quarter as deliveries fell far behind production due to logistical hurdles.
Supply issues dragged Fiat Chrysler (STLA.MI) sales down 6%.
However, macro concerns have taken center stage following last week’s inflation warning from used car dealer CarMax Inc. (KMX.N).
“We’re paying close attention to how the industry will respond to these concerns. Perhaps there will be more incentives, longer financing terms, or a combination of these,” said TrueCar analyst Zack Krelle.
Auto industry consultant Edmunds said a total of 3,393,988 new cars and trucks were sold in the United States in the quarter, down 0.9% from a year earlier.
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Reporting by Aishwarya Nair and additional reporting by David Shepardson in Washington; Edited by Maju Samuel
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