U.S. Auto Sales Expected to Surge 32% in First Half of Year... Recovery to Pre-COVID-19 Levels

[Photo by EPA Yonhap News]

[Asia Economy Reporter Park Byung-hee] An analysis has emerged that the U.S. automobile market has recovered to pre-COVID-19 pandemic levels.

The Wall Street Journal (WSJ) reported on the 1st (local time), citing JD Power analysis data, that new car sales in the U.S. in the first half of this year are expected to surge 32% year-on-year to 8.3 million units. It added that 8.3 million units represent nearly a 1% increase compared to the first half of 2019. If the forecast holds true, it means the market has recovered to pre-pandemic levels.

WSJ stated that due to low interest rates, government subsidies, and avoidance of public transportation after COVID-19, new car sales, especially of sport utility vehicles (SUVs) and electric vehicles, increased significantly in the second quarter.

However, WSJ also reported that sales have recently shown signs of slowing down. Some dealers explained they are suffering from inventory shortages. It appears that production disruptions caused by semiconductor supply shortages are having an impact.

Another market research firm, Wards Intelligence, has seen annual sales forecasts decline since April. In April alone, the annual sales forecast was close to 19 million units but has since dropped to 15.4 million units.

Japan’s Toyota Motor recorded second-quarter sales of 688,813 units, a 73% increase year-on-year. Toyota surpassed General Motors (GM) for the first time in 23 years in quarterly sales. GM’s second-quarter sales were 688,236 units, a 40% increase year-on-year.

Ford, which will announce its results this weekend, is expected to have recorded sales of around 645,000 units.

Volkswagen recorded sales of over 211,000 units in the first half of the year, marking its highest half-year sales in nearly 50 years.

Hyundai Motor and Kia Motors also achieved their highest-ever sales records in the first half, selling 407,135 units and 378,511 units respectively.

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