Washington, July 5 (U.S.): New-vehicle sales in the United States to major global automakers rose in the second quarter of the year on improving supply and strong demand, suggesting that higher interest rates had no measurable impact on purchases.
According to Reuters, auto production has been hit after the pandemic disrupted supplies of semiconductor chips and other raw materials, hurting automakers’ ability to cope with the surge in personal transportation.
Companies are now scrambling to make up for lost production as supply chain hurdles gradually fade away.
“The job market has remained healthy, and consumers have found a way to buy new wheels,” said Jonathan Smoak, chief economist for Cox Automotive.
Toyota Motor Corporation (7203.T) North America (TMNA) unit reported a 7.13% increase in US sales to 568,962 units for the quarter ended in June.
However, General Motors (GM.N) surpassed Toyota in the first quarter, with a nearly 19% increase in US sales to a total of 691,978 units, including 15,652 electric vehicles (EV).
Compared to its peers, the Japanese automaker has struggled to ship enough cars and trucks on time to dealers.
The supply chain is improving and “we expect the second half of the year to be better in production and wholesale for our dealers than the first half,” TMNA group vice president and general manager David Crist said in an interview with Reuters.
He added, “The client was able to absorb the increase in transaction prices in the industry along with the price increase.”
Earlier in the week, FCA US, a unit of Stellantis (STLAM.MI), and a Korean unit of Hyundai Motor (005380.KS) reported increases of 6% and 14%, respectively, in total vehicle sales.
Electric vehicles continue to see higher demand for stimulus under inflation and a price war sparked by market leader Tesla Inc (TSLA.O), which delivered a record number of vehicles in the quarter.
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