Sales of new vehicles in the United States benefited from strong demand in 2023, thanks in particular to attractive commercial offers in a context of rising interest rates and high inflation in the country.
Industry experts estimate that approximately 15.5 million vehicles will be delivered in the United States in 2023, an increase of nearly 13% year-over-year.
“Vehicle sales were ultimately much stronger than expected in 2023,” Garrett Nelson, CFRA Research analyst, commented for AFP.
“We are getting closer to pre-pandemic levels” which exceeded 17 million vehicles per year over the period 2015-2019, he notes, forecasting sales growth of 3% in 2024. They would be around 16 million.
The Edmunds firm is less optimistic, counting on a small increase of 1%, to 15.7 million.
According to Garrett Nelson, sales benefited from the improved situation in the supply chain, large inventories at dealers, more choice for buyers who were able to take advantage of promotions, price reductions and federal aid.
The electric vehicle specialist Tesla has notably made several reductions over the months.
“Prices have fallen by 2% to 3% in general, much more for electric vehicles, but they still remain at high levels,” notes Garrett Nelson.
General Motors – the largest manufacturer in the US market, with a claimed share of 16.3% for 2023 – delivered 2.6 million vehicles in the US between January and December.
Affordable prices
According to Marissa West, head of its American division, the group has been able to do well with its pickup trucks and has had “great success” with its entry-level SUVs which have allowed it to cross, for the first time, the mark of one million SUVs sold in one year.
Buyers are “looking for cheap options,” notes Edmunds, noting that vehicles costing less than $50,000 are sold on average in 30 days, compared to 47 days beyond this threshold.
The share of electric vehicles is expected to continue to rise, reaching 8% of all sales in 2024, compared to 6.9% in 2023, according to this source.
Tesla, which does not detail its sales by country, delivered 1.81 million vehicles worldwide (+ 38% year-on-year) in 2023.
Although it retained the world’s first place in electric vehicles for the year, it was demoted to second in the fourth quarter by the Chinese manufacturer BYD.
Manufacturers were pleased with the good performance of their electric models, but the pace of sales was lower than expected, which prompted several groups to review certain projects.
GM notably postponed the conversion of its Orion, Michigan assembly plant by one year, to the end of 2025.
Its annual sales of electric vehicles across all brands jumped 93%, to 75,883 units.
“Big Three”
Ford noted on Thursday a year 2023 marked by an “acceleration” in electric (17.9%) – where it claims to have retained its second place – and hybrid (+ 25.3%).
Over the whole year, the group sold a total of 1.99 million vehicles (+7.1% year-on-year), a high since 2020.
For its part, Stellantis (Jeep, Chrysler, Ram, Dodge, Fiat, Alfa Romeo) delivered 1.53 million vehicles in 2023, a drop of 1% year-on-year.
These three groups constitute the “Big Three”, the historic builders of Detroit.
They faced an unprecedented six-week strike, which paralyzed important sites like Ford’s Kentucky Truck Plant, which has a turnover of $25 billion per year.
PHOTO CYDNI ELLEDGE, THE NEW YORK TIMES ARCHIVES
UAW union members demonstrate outside General Motors headquarters in Detroit, Michigan, last September.
The movement ended on October 30 with new collective agreements containing wage increases and other benefits.
“Their margins will be under pressure because of higher labor costs following these social agreements,” underlines Garrett Nelson.
According to Ford, the new corporate agreement is expected to increase its labor costs by about $8.8 billion over four years, and increase the average cost of producing a vehicle by $900 by 2028.
A major player in the American market, the Japanese manufacturer Toyota sold 2.25 million vehicles (+ 6.6%) in 2023, including more than 657,000 examples (+ 29.2%) of its 26 models of so-called electrified vehicles ( 100% electric, hybrid, etc.).
The group has announced nearly $16 billion in investments in the United States since 2021, including almost $14 billion for a gigantic battery factory in North Carolina.