DETROIT (Washington Insider Magazine) – Sales of new automobiles in the United States fell over 21% in the 2nd quarter compared with the same period last year as the industry continued to experience production issues due to a global scarcity of semiconductors.
Yet despite soaring interest rates, gasoline priced at $5 per gallon, and high inflation, demand nevertheless outpaced supply from April through June. According to ABC NEWS, the lack of supply has driven prices to all-time highs and driven away many potential buyers from the market for new cars.
According to Edmunds.com, manufacturers sold 3.49 million automobiles in the quarter, which is over 933,000 lower than during the same time previous year.
According to J.D. Power, the average sales price of a new car for the first half of the year was close to $45,000, setting a record that is 17.5% higher than it was a year earlier. According to Edmunds.com, 12.7% of buyers who financed a new car in June made payments of $1,000 or more every month.
Lack of semiconductors and other parts prompted General Motors, which recorded a 15% decline in sales, to produce 95,000 vehicles missing at least one component. By the conclusion of the year, the unfinished vehicles should be completed and put on the market.
The chip scarcity didn’t get much better in the first half of the year, according to Jack Hollis, head of Toyota sales in North America, and he doesn’t see it becoming any better until the next summer.
For the first half of the year, Toyota sales dropped 19%, and in June, they were down 18%. This gave GM the opportunity to surpass the Japanese business and reclaim the position of top-selling carmaker in the United States, which it had previously lost.
Stellantis, formerly known as Fiat Chrysler, reported a fall in sales of 16%. Hyundai reported a decline in sales of 23%, and Nissan had a roughly 39% decline in sales during the quarter. Honda blamed “severe” supply chain issues for the company’s more than 50% decline in 2nd-quarter sales.
Ford won’t publish until Tuesday, while Tesla is expected to do so this weekend. The majority of manufacturers released their sales data on Friday.
According to Edmunds, 3.5 million new cars were sold in the U.S. during the most recent quarter, which is a 20.8 percent decrease from the same time previous year. Auto shoppers will likely continue to be frustrated by inventory shortages for the near future, according to Edmunds.
According to Toyota’s Hollis, demand is still quite high, particularly for the BZ4x electric car and more effective gas-electric hybrid vehicles. Approximately 27% of Toyota’s sales in June were plug-ins and hybrids, continuing an increasing trend, he added.
However, supply issues are restricting sales and inventories, according to Hollis. According to him, the corporation had 9,000 automobiles on dealer lots at the beginning of June and roughly 8,500 at the end. Within 36 hours after reaching dealers, vehicles are sold.
Hyundai made the announcement that it will no longer offer the Veloster and Accent compact cars in the United States, continuing the pattern of automakers discontinuing vehicle models as SUVs have grown to be the preferred body shape in the country.
The head of sales for Hyundai Motor America, Randy Parker, predicted a 30 percent increase in output over last year and stated he expected the chip scarcity to progressively improve this year.
The Ioniq 5, the company’s primary electric car, is selling well, with roughly 7,500 sold in the 2nd quarter, according to Parker.
However, it doesn’t seem like smaller gasoline cars are doing as well. Although sales of Hyundai’s Elantra small car fell by 44% during the quarter, they were temporarily suspended owing to a safety recall problem.
From January through June, sales of the tiny Toyota Corolla decreased by 25%, while those of the Honda Civic plunged by 54%.
