During the COVID-19 Pandemic, US Car Sales Fell 15% Last Year... Lowest in 8 Years

by Kwon Jaehee

Published 06 Jan.2021 09:53(KST)

GM and Hyundai Motor Decrease by 12% and 10% Respectively

[Image source=AP Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] The U.S. automobile industry is expected to record its lowest performance in eight years due to the COVID-19 pandemic.

On the 5th (local time), the Wall Street Journal (WSJ) reported, citing analyses from multiple research firms, that the total number of cars sold in the U.S. in 2020 is projected to be between 14.4 million and 14.6 million units.

This represents a roughly 15% sharp decline compared to 2019, marking the lowest level since 2012.

Specifically, General Motors (GM) announced the previous day that its U.S. car sales in 2020 decreased by 11.8%. Hyundai Motor's U.S. subsidiary also revealed that its sales in the U.S. market dropped by 10% last year. Toyota's sales fell by 11.3%, and Nissan's by 33%.

However, since the end of last year, automobile demand has been gradually recovering.

As of the fourth quarter of last year, GM explained that sales increased by 4.8% compared to the same period the previous year, recovering to pre-COVID-19 pandemic levels. Pickup trucks and sport utility vehicles (SUVs) appeared to drive demand. Sales of the electric vehicle Chevrolet Bolt also rose by 26%.

Steve Carlisle, GM's North America president, stated, "GM recorded performance above the industry average throughout the fourth quarter and the entire last year."

Hyundai also saw a 2% increase in U.S. market sales in December, supported by strong sales of SUVs such as the Palisade and Venue. However, total sales for the fourth quarter decreased by 2% compared to the same period last year.

The automobile industry is optimistic that demand will be stimulated this year thanks to federal government stimulus measures.