In spite of widespread supply problems, General Motors Co. was able to better fulfil the high demand for automobiles and trucks in 2022, overtaking rival Toyota Motor Corp. as the leader in U.S. vehicle sales.
After the firm reported a 2.5% increase in 2022 sales to 2,274,088 vehicles, more than Toyota’s 2,108,458 units in a closely watched competition, GM shares increased 2.7% in afternoon trade on Wednesday to $34.75.
Production at several automakers had been hampered by inventory shortages brought on by rising material costs and an ongoing chip crisis, which had kept the cost of cars and trucks high. Asian brands took the most impact.
“Toyota is still among the tightest when it comes to inventory,” Cox Automotive senior economist Charlie Chesbrough said.
In November, the Japanese manufacturer lowered its manufacturing goal for the entire year. According to figures released on Wednesday, sales of its SUVs, a crucial market, decreased 8.6% in 2022.
However, according to Toyota executives, there are some promising developments and the rate of inventory accumulation is moderate but constant.
“We’re optimistic our inventory levels will continue to improve in the first quarter and for the remainder of the year,” said Andrew Gillel, senior vice president of automotive operations at Toyota.
On Wednesday, sales declined for a number of other companies, including American Honda, Mazda North American Operations, Hyundai Motor America, and Kia Motors America.
According to Wards Intelligence data, new vehicle sales in the United States reached 1.26 million units in December, for a 13.31 million annual sales pace.
Analysts worry that price increases implemented by automakers to combat inflationary pressures and rising interest rates will have a negative impact on the selling of new vehicles in 2023.
A “very real concern” is affordability, according to Toyota CEO David Christ. However, the business anticipates strong demand this year.
According to car marketplace TrueCar, automakers will need to resume offering incentives to customers, a trend that was put on hold during the pandemic.