General Motors, Honda, Hyundai and Nissan posted gains for the first quarter, but Toyota and Stellantis, which owns the Jeep and Ram brands, saw volumes decline. — Bloomberg
DETROIT: Many automakers are seeing stronger US new car sales as dealer inventories are replenished by higher production volumes, but those gains are being muted by high sticker prices and surging financing costs.
General Motors Co, Honda Motor Co, Hyundai Motor Co and Nissan Motor Co posted gains on Monday for the first quarter, but Toyota Motor Corp and Stellantis NV, which owns the Jeep and Ram brands, saw volumes decline.
Deliveries last month likely rose by as much as 7.3%, according to an estimate by J.D. Power and LMC Automotive.
Ford Motor Co is expected to release its US sales and Tesla Inc, which provides global numbers, reported its results on Sunday.
The semiconductor shortage that emptied dealer lots in recent years is fading as inventories rose 70% since this time last year, according to Cox.
Cars are now sitting on dealer lots an average of 34 days before being sold. That’s up from 24 days a year ago, data from automotive researcher Edmunds.com show.
With average new car prices of nearly US$50,000 (RM220,975), Edmunds expects sales this quarter to decrease 1.8% compared with the fourth quarter of 2022.
Dealers are apprehensive about rising interest rates, which have replaced inventory shortages and the economy as the top problems, a Cox survey of auto retailers showed.
Auto loan payments are now US$784 (RM3,465) a month on average, up about US$177 (RM782) a month since March 2020 when the pandemic began.
“I still believe there is pent-up demand in the marketplace,” Randy Parker, chief executive officer of Hyundai Motor America, told reporters Monday.
“The challenge is going to be rising interest rates.”
The annual selling rate is expected to rise to 14.4 million in March, up from 13.5 million a year ago, according to the average forecast of eight market researchers. But that’s still low by historical standards.
Prior to the pandemic, annual US auto sales topped 17 million for five consecutive years.
General Motors said it estimates automakers collectively sold vehicles in March at an annualised rate of 15.5 million, indicating strong demand and more supply to meet it.
The Detroit-based manufacturer’s deliveries climbed 18% to 603,208 vehicles in the first quarter as chip supplies improved and inventories grew more plentiful.
The Chevrolet brand sold 124,000 Silverado pickups and GMC chalked up sales of 67,000 Sierra pickups, resulting in a 9% combined rise of deliveries in the lucrative full-sized truck market.
Overall, Chevy saw a 16% rise in sales and Cadillac increased 29% in the quarter, the company said.
The Cadillac luxury brand sold close to 1,000 of its all-electric Lyriq sport utility vehicle (SUV) as a production ramp up of that vehicle continues at a slow pace. The automaker delivered more than 20,000 electric vehicles in the three-month period on higher output of its Chevy Bolt model.
“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 in a quarter for the first time,” Steve Carlisle, president of GM North America, said in a statement.
Toyota said its US sales fell 8.8% in the first quarter to 469,558 – and 9.1% in March alone – hinting at lingering supply-chain woes. The results were dragged down by lower deliveries of its best-selling model, the RAV4 compact SUV, which dropped 16.3% both last month and in the year-to-date. Sales of the Highlander SUV also fell by double-digits.
One of the few highlights was in deliveries of its family friendly mid-sized sedan, the Camry, which rose 7.4% in the first three months.
“We continue to make improvements to our vehicle inventory to satisfy customer demand,” Jack Hollis, executive vice-president for sales at Toyota’s North American unit, said in a statement.
Stellantis joined Toyota in a first-quarter funk, with deliveries falling 9% to 368,237 vehicles.
Jeep brand sales plunged 20% – led by a 59% decline in the large Wagoneer SUV introduced two years ago.
The automaker’s Ram full-sized pickup saw a 17% sales drop in the first three months, but its Dodge Charger muscle car – which is being phased out at year-end –leapt up 43%.
“We are making the necessary adjustments to meet our customer’s expectations,” Jeff Kommor, head of US sales for the company, said in a statement without mentioning any specific measures to counter the slide.
One bright spot in the year-to-date results: Fleet vehicle sales to commercial customers soared 67%.
Honda said first-quarter US sales rose 6.8% to 284,507 vehicles, including an 8% gain in March. The best-selling CR-V compact SUV led the way, followed by robust demand for its stalwart Civic compact and Accord mid-sized sedans.
The Japanese automaker said March sales were the best since July 2021 and that it set sales records for the hybrid-electric versions of the Accord and CR-V.
Hyundai saw sales shoot up 16% in the first quarter to a record 184,449 vehicles. March was a strong month for the South Korean automaker as it reported an increase of 27%, its fifth consecutive monthly sales record.
The top sellers for the quarter were Hyundai’s Tucson compact SUV, mid-sized Santa Fe SUV and Elantra compact sedan.
Fuel-efficient models also drew in buyers with robust demand for hybrid-electric versions of all three of those models.
Transaction prices have held steady as demand for many models outstrips supply, Hyundai’s Parker said, adding that may change as industry inventories continue to expand. “I do see them moderating a bit,” he said.
Nissan posted a robust 17% gain in sales in the first three months to 235,818 vehicles, led by its best-selling Rogue compact SUV and Altima mid-sized sedan. —Bloomberg
