Sales of new vehicles remain robust despite tough economic conditions. Automakers reported sales gains in March and the first quarter, and the annual rate of sales ticked up to 15.5 million units — well above analysts’ expectations.

While the overall result was good, higher interest rates and other issues did hamper some automakers. Toyota and Stellantis reported sales dropped during the first three months of the year and Ford doesn’t report until Tuesday. Meanwhile South Korean automakers posted major gains, and Honda, Subaru, Nissan and Mazda posted sales increases.

Another big winner was General Motors as it gained market share.

GM posts solid gains

“GM is off to a great start in 2023,” according to Steve Carlisle, president of GM North America. “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 EVs in a quarter for the first time. 

“We’re leading in the fleet and commercial market, and all our brands have a lot of momentum heading into a busy season of new product launches.” Carlisle reported the automaker’s sales increased by 18% during the first three months of 2023 and it gained 1.5 points of market share. 

GM also said it delivered more than 20,000 electric vehicles during the first quarter.

However, the Detroit-based automaker wasn’t alone as other manufacturers reported gains for March and for the first quarter.

Best of the rest

Hyundai enjoyed record sales for the fifth consecutive month as it reported total March sales of 75,404 units — the best March in Hyundai history — and a 27% increase compared with March 2022.

“March was an incredible month for Hyundai,” noted Hyundai Motor America CEO Randy Parker during a conference call with reporters. While the industry faces some headwinds in the form of higher interest rates and economic uncertainty, there is still a substantial amount of pent-up demand as the supply of vehicles still has not caught up with demand, he added.

Genesis Motor America reported 5,656 units sold in March 2023, representing a best-ever March U.S. sales achievement for the brand and a 23% increase over a year ago. Genesis sold a record 13,769 units during the first quarter.

Kia America opened 2023 with a record first quarter of 184,136 units, a 15% increase over the previous high set in 2021. Kia’s March total of 71,294 vehicles marked the second-highest monthly performance in company history and was the eighth consecutive month of record-breaking sales. March sales were up 19.8% compared to the same period last year and up 7% higher than the previous March record. 

Honda stages sales rally

American Honda reported its best sales since July 2021 as Honda and Acura March sales topped 116,000 units. Honda sales increased 8% last month and 6.8% for the quarter, while Acura sales increased 2.6% during March and 18.5% in the first quarter.

“The strength of our all-new products is becoming clear as our inventory grows. Record sales of our electrified Honda CR-V and Accord and the best sales month yet for the all-new Acura Integra delivered our best first quarter in two years,” said Mamadou Diallo, senior vice president of Auto Sales at American Honda Motor Co. Inc.

“We expect this positive momentum to continue throughout the year as sales of SUVs and hybrid-electric models lead us toward our electrified future.”

Other Japanese brands fared well

Subaru of America reported 53,213 vehicle sales for March 2023, a 22.8% increase compared with March 2022. SOA also reported year-to-date sales of 143,376, an 8.3% increase compared to the year-ago period. March marked the eighth consecutive month of month-over-month sales increases for the automaker, Subaru reported.

The Nissan Group reported sales for 2023 of 235,818 units, an increase of 17.3% versus the prior year as sales of Nissan brand vehicles increased by 15.9% and sales of Infiniti brand vehicles were up 40.1%.

Mazda North American Operations reported total March sales of 34,778 vehicles, an increase of 5.3% compared to March 2022. Year-to-date sales totaled 88,384 vehicles. an increase of 7.4% compared to the same time last year. 

Audi also posted a 49% sales increase during the first quarter.

Toyota, Stellantis lose ground

Two of the largest automakers, Toyota and Stellantis, reported sales declines during the first quarter.

Toyota, which has battled GM for sales leadership in the U.S. for the past couple of years, reported sales of Toyota brand vehicles dropped by 12% in March and by 11% through the first quarter. Lexus, on the other hand, reported an increase of 12.1% during March and a 6% increase for the first three months of 2023.

Stellantis reported sales of 368,237 vehicles in the first quarter for 2023. Overall, total U.S. sales for the first quarter declined 9% versus the same period last year
  
“As we continue to navigate the market conditions transpiring across the automotive industry, together with our dealer network, we are making the necessary adjustments to meet our customer’s expectations,” said U.S. Head of Sales Jeff Kommor. 

“We also continue to see strong demand for our plug-in hybrid vehicles, with the Jeep Wrangler 4xe and Grand Cherokee 4xe placing No. 1 and No. 2, respectively, as America’s best-selling PHEV vehicles,” he noted.

Tesla, the leader in electric vehicles, reported its production and deliveries, increased by a modest 5% over Q4 2022 during the first three months of 2023 as it built 440,808 vehicles and delivered 422,875 around the United States.

Rivian also reported delivering 7,946 vehicles during the first quarter — more than analysts predicted.

“Since inventory levels are improving, interest rates are now topping the list of the greatest obstacles that automakers will be facing in 2023 to move metal,” said Jessica Caldwell, Edmunds’ executive director of insights. 

“But with major challenges come great opportunities: Since interest rates are at the forefront of consumers’ minds, any automaker or dealer that can advertise incentives related specifically to interest rates will likely get more attention. This could be a powerful marketing tool that would enable sellers to tap into the significant pent-up demand that has been building over the past few years and convert that demand into actual sales.” 

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• Source: https://www.thedetroitbureau.com/2023/04/new-vehicle-sales-rock-in-march-and-first-quarter/