Large Pickup Trucks and Electric Vehicles Lose Popularity
Bloomberg reported on the 2nd (local time) that affordable compact sedans and sport utility vehicles (SUVs) dominated sales in the United States in the first quarter of this year.
Bloomberg stated that there was a noticeable increase in market share for mid-priced cars and compact SUVs in the first quarter. On the other hand, according to market research firm GlobalData, sales of high-priced large pickup trucks declined in January and February this year. Some brands such as Jeep, Tesla, and Ford lowered prices to offset inflation and stimulate sluggish electric vehicle demand.
David Oakley, a GlobalData analyst, said, "Affordable pricing is a critical issue in the automotive industry and will continue to be so," adding, "Currently, the market seems to be holding up in difficult conditions and appears to be addressing the problems."
According to the average estimate of eight analysts surveyed by Bloomberg, U.S. vehicle sales in March this year are estimated to reach about 15.8 million units on a seasonally adjusted annual rate basis. This is slightly higher than the 14.9 million units sold in the same month last year.
Toyota Motor announced that deliveries increased by more than 20%, driven by sales of the compact Corolla sedan and RAV4 crossover. The first-quarter new car sales in the U.S. totaled 565,098 units, with Toyota sales surpassing those of the higher-priced Lexus. In particular, Corolla sales increased by about 40%, and RAV4 sales rose by about 50%.
Nissan stated that the Rogue crossover and low-priced Sentra sedan led the sales increase this quarter. Although specific figures were not disclosed, deliveries reportedly rose by 78%.
Honda saw a 17% increase in sales, driven by the popularity of the CR-V crossover and Civic compact.
GM reported a sharp decline in sales of large SUVs such as the Chevrolet Tahoe and GMC Yukon, but sales of the compact SUV Chevrolet Trax jumped sixfold. Overall first-quarter sales fell by 1.5%, but retail sales alone increased by 6%.
Kia's first-quarter sales decreased by 2.5%, but sales of the compact Forte increased by 10%. Bloomberg noted that Hyundai's sales remained nearly unchanged.
While sales of mid-priced vehicles and compact SUVs increased, electric vehicles appeared sluggish. Bloomberg cited a lack of charging infrastructure and high prices as causes. On the other hand, hybrid vehicle sales increased.
Electric vehicle maker Tesla announced that its first-quarter vehicle deliveries totaled 386,810 units, down 8.5% from the same period last year. This marks a contraction for the first time in four years and fell significantly short of the expert forecast of 457,000 units compiled by FactSet.
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