GM leads US auto sales as industry heads for best year since pandemic By Reuters

© Reuters. FILE PHOTO: Autos on the market are seen at Serramonte Ford in Colma, California, U.S., October 3, 2017. REUTERS/Stephen Lam/File Photograph

By Nathan Gomes

(Reuters) -Common Motors edged previous rival Toyota Motor (NYSE:) to stay the top-selling automaker within the U.S. in 2023 as easing provide snags and sustained demand drive the trade to its greatest yr because the pandemic.

The Detroit automaker shrugged off a success from a expensive auto strike to report U.S. new car gross sales of about 2.6 million models for 2023, up 14.1% from final yr, whereas Toyota’s annual gross sales rose 6.6% to about 2.25 million automobiles.

General, U.S. new car gross sales final yr completed at round 15.5 million models, of which electrified automobiles together with hybrids made up almost 17%, in keeping with knowledge launched by Wards Intelligence on Wednesday. That was the very best since 2019 and surpassed gross sales of almost 13.9 million in 2022, in keeping with figures from marketing consultant Cox Automotive.

The regular restoration in car gross sales reinforces different indicators that the U.S. economic system is absorbing the shock from the fast rise in rates of interest with out sliding right into a recession, although some analysts have warned that larger borrowing prices would take a toll on demand this yr.

“Excessive car costs and excessive rates of interest stay the trade’s Grinch proper now, and that development will proceed into subsequent yr,” Cox stated.

In an indication of easing demand, automobile sellers needed to provide beneficiant incentives and reductions in December to clear older stock after two years of holding again on promotions.

“That is the third consecutive yr during which U.S. shoppers spent greater than half a trillion {dollars} shopping for new automobiles,” J.D. Energy stated in a report final month.

Electrical automobiles additionally grabbed an even bigger share of client spending in 2023.

Toyota stated on Wednesday gross sales of electrified automobiles, which embrace hybrid automobiles and all electrical fashions, rose 30.4% to 657,327 automobiles, making up 29.2% of its general U.S. gross sales.

Gross sales of Toyota’s pure EVs, specifically the BZ4X and its Lexus RZ, totaled 14,715 models in 2023 and accounted for about 2.23% of general gross sales of electrified automobiles.

GM offered 75,883 EVs – of which 62,045 have been Bolts and 13,838 have been Ultium platform EVs.

The Detroit automaker expects the sturdy demand to hold over into 2024 and forecast whole trade gross sales of 16 million models for the yr.

Shares of Ford (NYSE:), U.S.-listed shares of Stellantis (NYSE:) and Tesla (NASDAQ:) and GM settled decrease on Wednesday.

GM additionally stated it will provide $7,500 incentives on its EVs that misplaced a U.S. authorities tax credit score this week.

Hyundai (OTC:)’s, which reported a 11% rise in its annual gross sales, posted annual EV gross sales of 55,783 models. Mazda and Honda (NYSE:) additionally reported larger annual gross sales.

Complete U.S. EV gross sales are anticipated to be about 8% of general auto gross sales in 2023, with that quantity rising to round 10% this yr, Cox added. However analysts say excessive rates of interest are set to harm EV demand as nicely.

“Gross sales of EVs are prone to proceed to enhance, simply not on the astronomical charge the trade noticed in years previous,” AutoForecast Options stated in a report.