General Motors (GM) has overtaken Toyota in car sales in the US market. GM lost the top spot to the Japanese automaker last year. Later in the first nine months of 2022, the US company regained that position. But some analysts and investors fear that annual car sales in the world’s largest economy will decline due to the risk of a recession. So the article is about General Motors Surpassed Toyota As World’s Largest Automaker.
According to the industry publication Automotive News, GM has been the top seller of vehicles in the United States since 1931. At that time, the company overtook another American car maker, Ford Motor Company, to occupy the top spot. However, the company lost ground to Toyota last year due to production disruptions due to COVID-19.
The automobile industry has so far faced shortages of vehicles and significant cost increases due to supply constraints. But analysts are now warning that demand may slow in the coming quarters. Rising interest rates discourage consumers from taking out loans for cars and trucks in the coming months.
In an interview, Hyundai Motor North America CEO Randy Parker said, “We are cautiously optimistic about vehicle sales growth.” There is much negative sentiment in the market. That is why we are concerned about it. In the third quarter of the year (July-September), the South Korea-based car maker’s sales increased by 3 percent.
GM said it sold 555,580 units of the vehicle in the quarter that ended September 30. This number is 24 percent higher than in the same period last year. In 2021, the company’s car sales were negatively impacted due to production disruptions and reduced inventories due to Covid-related disruptions. At the same time, Toyota reported sales of 526 thousand 17 units. This number is 7.1 percent less than in the same period last year. GM surpassed Toyota in the third quarter and the first nine months of this year. During this period, the American car maker sold about 80 thousand units more cars than Toyota. Earlier in 2021, the Japanese company led the US market by selling more than 100,000 units.
Citing the 2021 win, Toyota President Akio Toyoda told dealers last week that he danced in the office when the figures were announced. According to data from Words Intelligence, 1.11 million units of cars were sold in the US in September. The total number of cars sold this year is one crore 34 lakh 90 thousand units.
GM said the company’s share of total car sales in the US increased by 2.4 percent. To keep up with the high demand, the company plans to increase the production of its Chevrolet Bolt electric models. Delivery of vehicles to consumers has also become another headache for some organizations. Tesla’s share price fell after it failed to sell cars better than expected in 2022’s third quarter. Even after production ends, some companies like Tesla struggle to deliver vehicles on time due to logistics bottlenecks. Italian carmaker Fiat Chrysler’s car sales fell 6 percent due to supply issues.
Used car retailer CarMax last week cited macroeconomic concerns as a major drag on vehicle sales. According to Jack Krell, an analyst at Trucker, another firm, economic conditions, rising interest rates, and vehicle availability could create an imbalance between supply and demand in the current quarter.
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