US Auto Sales Recover to Pre-COVID-19 Levels

Annualized March Sales of 16.8 Million Units... Semiconductor Shortage Remains a Variable

[Asia Economy Reporter Park Byung-hee] U.S. car sales in March have nearly recovered to pre-COVID-19 levels. This is an important sign showing the recovery of the real economy, and it is expected to increase confidence in the U.S. economic recovery.

According to the Wall Street Journal (WSJ) on the 1st (local time), U.S. car sales in March recorded an annualized rate of 16.8 million units. This almost recovered to the level of 17.04 million units sold in February last year, just before the COVID-19 pandemic. U.S. car sales sharply declined to 11.4 million units in March and 8.6 million units in April last year, when the COVID-19 pandemic was declared.

Total sales in the first quarter of this year increased by 11.3% compared to the same period last year. Sales in January and February fell by 3.3% and 13% respectively compared to the same months last year, but thanks to the sharp rebound in March sales, overall sales increased.

General Motors (GM) saw a 4% increase in sales in the first quarter compared to the same period last year. Stellantis sales also rose by 5%, while Ford's sales remained similar to last year.

Sales growth was relatively prominent among foreign car manufacturers. Toyota's sales in the first quarter last year were below 500,000 units, but surged 22% in the first quarter this year, surpassing 600,000 units. Hyundai's sales increased by 28%, and Honda and Nissan sales rose by 16% and 11%, respectively.

With the spring season, a seasonal peak, approaching and thanks to President Joe Biden's economic stimulus law, Americans' wallets have become fuller, so sales are expected to increase further.

However, the semiconductor shortage remains a variable. In the second quarter, production stoppages due to semiconductor shortages are expected to significantly affect sales. Ford will suspend operations at its truck plants in Dearborn, Michigan for two weeks and in Kansas City, Missouri for one week starting from the 5th. It is also considering suspending operations and overtime work at several other plants. Stellantis also announced it will halt operations at five North American plants in mid-month.

Judy Wheeler, head of Nissan Motor's U.S. sales, said, "Honestly, first-quarter sales could have been much higher," adding, "The semiconductor supply shortage definitely had an impact."

Due to production disruptions, the inventory of car dealers as of the end of February was reported to be 26% lower than the same period last year. Some dealers are concerned that the shortage of inventory may delay the launch of new cars scheduled for this year.

This content was produced with the assistance of AI translation services.