There are many reasons why prices for cars are sky-high right now, but in the first quarter of 2022 sales are falling sharply. On an annualized basis, the US market has just fallen by 16.6 percent in the quarter. It’s so rude that some brands advertise the fact that they jumped less than competitors.
Of course, at the heart of the problem is a huge shortage of parts, which includes a sharp shortage of microchips available for new cars. Due to this shortage and other factors the supply of available cars, trucks and SUVs is much less than the current demand.
However, for many of you it may come as a shock to learn that GM sold 20.4% fewer cars in the first quarter. This includes a drop in total sales under the Buick brand by 58.2 percent. Dodge fell 36 percent, Chrysler 27 percent and RAM 15 percent. Even Jeep with the new chic Grand Wagoneer decreased by a couple of points.
Not bypassed and imported brands. Honda fell 23 percent, Toyota 14.9 percent and Nissan 28 percent. Porsche fell 24.9 percent and the VW Group as a whole fell 23.2 percent.
Not every brand suffers the same. BMW has reported year-on-year improvements for its own brand as well as for the MINI and Rolls Royce. With all three together, BMW is up 3.8 percent from last year. Genesis jumped 42.6 percent on its side. So some brands are still moving forward despite the market environment.
In addition, the demand for electric vehicles is growing even more than expected. In the first quarter, 16 percent of Hyundai’s sales in the United States were electric vehicles. “If gas prices remain high, it will continue to push consumers towards environmentally friendly technology,” said Randy Parker, Hyundai’s senior vice president of U.S. sales.
We talked a lot about shortage of spare parts and the shift to electric vehicles, but it looks like the two may be more connected than ever. If you were expecting a new vehicle with gasoline that is not yet available due to a shortage of spare parts, would you consider an EV if you could get it much earlier?
Automakers can’t build electric vehicles fast enough because the whole market is hitting hard
Source link Automakers can’t build electric vehicles fast enough because the whole market is hitting hard