HASSOUNA MOHAMED (ABU DHABI)
The US automotive industry witnessed a notable recovery in 2023, registering an increase in sales of over 10%, and returning to its pre-pandemic levels.
The recovery in demand and the availability of models in showrooms contributed to the positive outlook despite a six-week strike by United Auto Workers. Also the past year saw an increase in sales of electric cars, although at a slower pace compared to 2022.
The total sales of new cars in the US reached 15.5 million units in 2023, representing a 12.4% increase compared to 2022, according to news reports.
General Motors announced sales of 2.6 million cars in the US in 2023, reclaiming its position as the largest sales company in the country with a 14% increase from 2022.
As for Toyota, sales in the US rose by 7% in 2023, reaching around 2.3 million vehicles, benefiting from the increased demand for hybrid cars. Similarly, Honda reported a 33% increase in the same period.
Stellantis, the parent company of Chrysler, Jeep, and Ram, was the only manufacturer to experience a decline in sales, approximately 1% in the US during the past year.
Supply chain disruptions and manufacturing challenges had affected new car sales since the beginning of the COVID-19 pandemic, making 2022 the worst year for sales in over a decade. However, the current availability of options for consumers in showrooms, coupled with decreasing prices and numerous offers, has improved the overall buying experience.
This year also may pose challenges for US auto manufacturers amid an increase in production rates, and pressures consumers face due to rising interest rates.
Additionally, wage increases in the US automotive sector are expected to add new costs worth billions of dollars for companies like General Motors, Ford, and Stellantis.
Meanwhile, electric car sales continued to grow in the US in 2023, with a 48% increase in the first 11 months of the year. However, the growth rate has slowed compared with the previous year, leading some companies to halt production or delay investment plans.
Despite a significant reduction in the average price of new cars in December 2022, dropping to around $46,000 by the end of 2023, electric car prices remained considerably higher than in 2019.
Tesla announced the export of about 1.8 million electric cars worldwide last year.
Despite a substantial price reduction, Tesla’s growth slowed in 2023, allowing Chinese company BYD to become the world’s top-selling electric car company in the fourth quarter of 2023.
For consumers hesitant to adopt fully electric cars, hybrid vehicles, seen as a viable option, are expected to witness a resurgence in sales in 2024.