'GM Surpassed' Toyota Rises to No.1 in US Sales...A Major Upset Caused by COVID-19

(Photo by Reuters)

[Asia Economy Reporter Yujin Cho] Japanese automaker Toyota has surpassed General Motors (GM) in the U.S. automobile market, becoming the first foreign automaker to claim the top spot. This is interpreted as a major upheaval caused by the semiconductor supply shortage triggered by the COVID-19 pandemic, which has shaken the global automotive industry.

On the 4th (local time), Toyota's U.S. sales last year increased by about 10% compared to the previous year, reaching 2.3 million units, while GM's sales dropped about 13% to 2.2 million units.

Thus, based on annual sales volume, Toyota overtook GM and rose to become the best-selling automaker in the U.S. Toyota is the first foreign automaker to achieve the number one sales volume in the U.S. market.

According to the U.S. automotive magazine Automotive News, GM had held the top sales position in the U.S. market for 89 years since 1931, when it surpassed its competitor Ford.

This market shift stems from the global semiconductor shortage following the COVID-19 crisis. GM, hit hard by the semiconductor shortage, experienced factory shutdowns leading to a sharp decline in sales, whereas Toyota successfully managed its supply chain and significantly increased its sales.

In particular, the sales growth of the Corolla and Camry models served as the main drivers of this growth. Last year, Corolla sales in the U.S. market increased by 5%, and Camry sales rose by 6.5%.

Toyota's management stated that this change in ranking is not expected to be permanent. Jack Hollis, Senior Vice President and head of Toyota U.S. sales, said, "Maintaining the number one position is neither our goal nor priority, nor do we see it as sustainable." He also stated that Toyota has no intention of using the sales achievement of surpassing GM in any form of advertising.

The Wall Street Journal (WSJ) reported that GM declined to comment on Toyota's rise to number one and the change in sales rankings when requested for a statement.

Besides Toyota, other foreign automakers such as Hyundai also performed well in the U.S. market last year. Hyundai Motor Company sold 740,000 units, a sharp 19% increase from the previous year, and Japanese Honda sold 1.47 million units, up 8.9% from the previous year.

Additionally, Mazda, Volkswagen, and BMW posted above-average sales performances, according to estimates by research firm Cox Automotive.