2024-01-14 21:04:42
Hassouna Al-Tayeb (Abu Dhabi)
The American automobile sector experienced a state of recovery during the past year 2023, achieving an increase in sales by more than 10%, and returning to its normal path, following the difficulties it has been suffering from since the beginning of the outbreak of the Covid-19 pandemic.
The recovery in demand and the availability of models in dealership showrooms enhanced the results that car manufacturers were able to achieve. The six-week strike by United Auto workers did not have a significant impact on the sector’s momentum and the continued rise in electric car sales, despite its slow pace compared to last year. New car sales in America reached 15.5 million units during the past year 2023, an increase of 12.4%, compared to the previous year, according to the Wall Street Journal.
Among these sales, General Motors announced sales of 2.6 million cars in America during the year 2023, regaining its leadership as the largest company in terms of sales in America, with an increase of 14% over the year 2022. Toyota’s sales in America also increased by 7%. % in 2023, for regarding 2.3 million vehicles, benefiting from the recovery in sales of hybrid cars, while its counterpart, Honda, recorded an increase of 33% in the same period.
Stellantis, the parent company of Chrysler, Jeep and Ram, is the only company whose sales declined by regarding 1% in America over the past year. Disturbances in supply and manufacturing chains and lack of supply in dealership showrooms have had their impact on new car sales since the beginning of the outbreak of the Corona virus, making 2022 the worst year for sales in more than 10 years.
Many options are now available to the consumer in showrooms, with the barriers to manufacturing processes disappearing. Increased supply levels also helped lower prices and provide more price offers.
Production rates
But this year may pose a kind of challenge for manufacturing companies, as production rates continue to increase and the pressures facing the American consumer as a result of rising interest rates continue.
Automakers also enjoyed several years of recovery, due to the consumer’s desire to buy and his willingness to pay more money, in light of the scarcity of supply at that time.
Throughout the pandemic, officials in the automotive sector pledged to keep inventory at low levels as a means of achieving profits, indicating that sales are unlikely to return to levels before the Corona pandemic, as results for several years have exceeded 17 million cars.
Some sector experts expect the sales growth rate during this year to reach 15.6 million cars annually, a slight increase compared to last year.
Meanwhile, automakers are racing to build new factories in America to increase production rates, with the aim of supporting the transition towards adopting electric cars in the long term.
cars prices
While car prices remained much higher than they were in 2019, the average price of a new car jumped in December 2022, declining further to regarding $46,000 at the end of last year.
It is expected that rising wages for workers in the American auto sector will add billions of dollars in new costs to companies including General Motors, Ford, and Stellantis. Other companies, such as Honda, Toyota, and other companies that do not have labor unions, also increased wages. Sales of electric cars in America continued to rise over the past year, by 48% during the first 11 months of the year.
Tesla recently announced that it exported regarding 1.8 million electric cars to different parts of the world during the past year. Despite the significant reduction in the prices of its vehicles, its growth slowed during the year 2023, which provided the opportunity for the Chinese BYD to occupy first place as the largest company in the world selling electric cars, during the last quarter of 2023.
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