Image default

Sales Build in November as Inventories Grow


With inventories rising, sales of new vehicles continued to show signs of growth as Toyota, Subaru and Hyundai reported double digits gains for the month.

aerial car Parking lot full outdoors Square, cars in row Parking on the side of the jam and evening sun. Leave space empty for text.
Rising inventories helped some automakers move more metal in November.

Subaru of America reported a 51.7% increase compared with November 2021. The automaker also reported year-to-date sales of 499,821, a 6.2% decrease compared with the same period in 2021.

“We are excited to enter the final month of the year with another month of strong sales despite ongoing supply chain challenges, and we thank our retailers for continuing to demonstrate the highest level of sales efficiency and unparalleled customer service,” said Thomas J. Doll, president and CEO, Subaru of America Inc.

Hyundai sales grow 

Hyundai Motor America reported total November sales of 63,305 units, a 43% increase compared with November 2021. Hyundai set total records in November for Elantra HEV, Santa Fe, Santa Fe HEV, Tucson, Tucson HEV, Kona EV and Santa Cruz. 

Hyundai fleet sales remained at 1.4% of total volume for the year despite analysts’ predictions sales to commercial and rental fleets were on the rise across the industry.

“This was a terrific November for sales and especially our line-up of eco-friendly vehicles,” said Randy Parker, CEO, Hyundai Motor America. “Despite economic headwinds, we were still able to record an all-time retail and total sales record in November. Overall sales, specifically the Tucson and Santa Fe brands, continue to perform well and I’m excited to see how we finish the year.” 

Hyundai SVP Randy Parker
Hyundai’s Randy Parker noted it was a “terrific November” especially for “eco-friendly vehicles.”

Genesis reported a record November with net gain of three units over November 2021, meaning sales were essentially flat.

Kia America announced best-ever November sales of 56,703 units, an 8% increase over the previous November sales record set in 2016, and a 25.1% improvement year-over-year. Sales of Kia’s electrified models — which have posted double or triple-digit gains in the past five months — also contributed to the record-breaking performance with a 133% year-over-year increase.  

Not all makers rode high

American Honda reported sales of both Honda and Acura brands sales slipped when compared to sales in November 2021. Honda brand sales fell 5.2% and Acura sales dropped 13.8 percent.

TMNA reported November 2022 U.S. sales of 169,226 vehicles, up 10.2% on a volume basis. Toyota Division sales for the month totaled 151,039 vehicles, up 12.2% on a volume basis.  

However, Lexus Division sales for the month totaled 18,187 vehicles, down 4.3% on a volume basis. 

Toyota’s Jack Hollis said inventories are improving, but they’re coming from ridiculously low levels.

TMNA’s November 2022 electrified sales totaled 38,288 vehicles, down 9.4% on a volume basis. CYTD 2022 total electrified vehicle sales represent 23.8% of total TMNA sales.

Jack Hollis, TMNA executive vice president, told Toyota and Lexus sales totals are basically dependent on when vehicles arrive at dealerships. 

“We have the longest lines for vehicles we have ever had,” he said. Toyota has a four-day supply of inventory on hand while Lexus has a seven-day supply, and the numbers represent an improvement for early this year. Hollis told a group of reporters in Detroit that Toyota was on a 36-hour supply at one point this year.

The entire industry will continue to be supply constrained throughout 2023 even and the SAAR or seasonally adjusted annual rate of sales in the auto industry rise to 15 million units from the current rate of 14 million units, Hollis said. 

“We will be supply constrained all next year,” he said.

Supplies Grow

“The supply situation in the new vehicle market has significantly improved over recent months,” said Charlie Chesbrough, Cox Automotive senior economist. “But with interest rates rising, and consumer optimism falling, the key question now is whether buyers will be willing and able to buy.”

The total U.S. supply of available unsold new vehicles stood at 1.56 million units at the end of October, compared with a revised 1.32 million vehicles at the end of September. Days’ supply climbed to 49, the highest since May 2021, and compared with a revised 43 days’ supply at the end of September.

Supply at month end was 78% higher, or 680,000 units, than at the end of October 2021. Days’ supply was 70% higher than at the same time a year ago.


Source link

Related posts

A Week With: 2023 Genesis G90 3.5T

Charles Sylva

Auto Culture Spawns Plenty of Books for Holiday Gifts

Charles Sylva

First Drive: 2023 Kia Niro

Charles Sylva