April 3 (Portal) – World’s top automakers reported a rise in US first-quarter sales on improved deliveries to dealers, except for Toyota Motor Corp (7203.T), which continued to grapple with parts shortages, data showed on Monday .
General Motors Co (GM.N), which replaced Toyota as the top U.S. automaker in 2022, saw auto sales rise 17.6% in the first quarter.
“We gained significant market share in the first quarter, pricing was strong, inventories are in very good shape and we sold more than 20,000 electric vehicles (EVs) in a quarter for the first time,” said Steve Carlisle, GM executive vice president a statement.
Vehicle production suffered a slump after the pandemic disrupted supplies of semiconductor chips and other commodities, affecting automakers’ ability to meet the surge in demand for personal mobility. Since then, companies have been trying to make up for lost production as supply chain issues begin to ease.
But rising interest rates and recession fears could be spoilsports in an industry where most vehicle purchases are financed with debt, analysts say as they watch for signs of faltering demand. The average transaction price for vehicles has also risen sharply in the past year.
“Consumers face credit uncertainty as rapidly rising interest rates have created barriers to entry for even the most qualified buyers,” said Jessica Caldwell, executive director of insights at auto research firm Edmunds.
GM said Monday that U.S. first-quarter sales rose to 603,208 units from 512,846 a year earlier. Toyota said sales fell 8.8% to 469,558 vehicles, but added that inventories were improving.
The Asian competitors Mazda, Honda and Hyundai recorded an increase in sales.
“Anyone looking for signs of a recession won’t find them in the new car market as a number of manufacturers delivered record first-quarter sales,” said Charlie Chesbrough, senior economist at Cox Automotive.
EV leader Tesla Inc (TSLA.O) posted record deliveries, but its shares fell Monday on growing margin concerns after aggressive price cuts.
Overall, US new car sales in March totaled 1.37 million units, with an annual sales rate of 14.82 million, according to data released by Wards Intelligence on Monday.
Reporting by Nathan Gomes, Abhijith Ganapavaram, Kannaki Deka and Shivansh Tiwary in Bengaluru; Edited by Shilpi Majumdar
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