General Motors has reinstated its position as the top-selling automaker in the US in 2023 after beating rival Toyota Motor. The feat was achieved as supply snags and sustained demand drove the industry to its best year since the pandemic. After making it through a costly auto strike, the Detroit automaker reported new vehicle sales of about 2.6 million units for 2023, up 14.1% from the previous, while Toyota’s annual sales rose 6.6% to about 2.25 million vehicles.
Overall, the US new vehicle sales last year finished at around 15.5 million units. Of this figure, electrified vehicles including hybrids contributed nearly 17%, according to data released by Wards Intelligence, Reuters reported. That was the highest since 2019 and surpassed sales of nearly 13.9 million in 2022, according to figures from consultant Cox Automotive.
The steady recovery in vehicle sales are suggestive of the fact that the US economy is absorbing the shock from the rapid rise in interest rates without sliding into a recession. However, some analysts have warned that higher borrowing costs could take a toll on demand this year. “High vehicle prices and high interest rates remain the industry’s Grinch right now,” Cox said.
December saw car dealers offering generous incentives and discounts to clear older inventory after two years of holding back on promotions. “This is the third consecutive year in which US consumers spent more than half a trillion dollars buying new vehicles,” JD Power said in a report last month. The report highlighted that even electric vehicles grabbed a bigger share of consumer spending.
General Motors sold 75,883 electric vehicles – of which 62,045 were Bolts and 13,838 were Ultium platform EVs. On the other hand, Toyota’s sales of electrified vehicles, including hybrid vehicles and all electric models, rose 30.4% to 657,327 units, making up 29.2% of its overall US sales. Sales of the company’s pure EVs, namely the BZ4X and its Lexus RZ, totaled 14,715 units in 2023 and accounted for about 2.23% of overall sales of electrified vehicles. “Sales of EVs are likely to continue to improve, just not at the astronomical rate the industry saw in years past,” AutoForecast Solutions said in a report.