U.S. auto sales in 2022 are down 8% to 13.7 million, data from research firm Wards Intelligence show.
This is the worst figure since 2011, writes The Wall Street Journal. Sales exceeded the 17 million car mark for five consecutive years before the COVID-19 pandemic began in 2020.
A number of auto executives were encouraged by the relatively strong fourth-quarter sales volume amid an improving parts supply situation. Now, however, some experts fear there could be demand problems amid rising interest rates and high inflation putting negative pressure on potential buyers.
“Things are going to get a lot tougher in 2023,” said Hyundai U.S. head Randy Parker, referring to rising interest rates. His company reported a slight decline in sales last year.
“At the beginning of last year, the industry as a whole was planning to sell more than 16 million vehicles,” notes Toyota Motor’s North American sales director Jack Hollis. But companies quickly retracted their projections as companies were forced to suspend or reduce production because of shortages of parts, and primarily chips.
“It’s not the end of the world,” Hollis believes. He said there are early signs that parts shortages and rising raw material prices are easing. Many automakers reported improved sales near the end of last year as chip supplies began to improve.
Toyota’s Hollis predicts that 15 million cars will be sold in the U.S. in 2023. Edmunds analysts estimate the figure will be 14.8 million.
Nissan Motor’s sales fell about 25 percent last year, but declined only 2 percent in the fourth quarter amid increased availability of semiconductors. “The situation has definitely gotten better,” said Judy Wheeler, who oversees Nissan’s U.S. sales.
Electric cars in the country accounted for about 6 percent of the market in 2022, up from about 3 percent a year earlier, according to J.D. Power.
That included Tesla increasing production of electric cars by 47% to 1.37 million in 2022. The company’s deliveries rose 40% to 1.31 million.
As reported, General Motors regained leadership in the U.S. market last year, overtaking Japan’s Toyota in sales.
GM sales rose 3% to 2,274,088,000 vehicles. Sales of electric cars jumped 58% to 39,179,000, the company said.
Toyota sold 2 million 108,458,000 vehicles in the U.S. last year, 10% less than in 2021. At the same time, sales of cars with electric motors, including hybrids, decreased 14% to 504,016 thousand, according to the automaker.
In 2021, Toyota for the first time became the sales leader in the U.S. market, surpassing GM, which has retained the first position since 1931.
