'GM Surpassed' Toyota Rises to No.1 in US...A Major Upset Caused by COVID-19 (Comprehensive)

Shift in Semiconductor Supply Shortage Landscape
Hyundai and Kia Also Grow by 19%

(Photo by Reuters)

[Asia Economy reporters Yujin Cho and Changhwan Lee] Japanese automaker Toyota has surpassed General Motors (GM) in the U.S. automobile market, becoming the first foreign automaker ever to claim the top spot. This is interpreted as a major upheaval caused by the semiconductor supply shortage triggered by the COVID-19 pandemic, which has shaken the global automotive industry.

According to the Wall Street Journal (WSJ) on the 4th (local time), Toyota's U.S. sales last year increased by about 10% year-on-year to 2.3 million units. In contrast, GM's sales dropped about 13% year-on-year to 2.2 million units.

Thus, based on annual sales volume, Toyota overtook GM and rose to become the best-selling automaker in the U.S. Toyota is the first foreign automaker to achieve the number one sales volume in the U.S. market.

According to the U.S. automotive magazine Automotive News, GM had held the top spot in U.S. market sales for 89 years since 1931, when it surpassed its competitor Ford.

This market shift stems from the global semiconductor shortage following the COVID-19 crisis. GM's factories, hit hard by the semiconductor shortage, experienced prolonged shutdowns leading to a sharp decline in sales, whereas Toyota successfully managed its supply chain and was able to significantly increase sales.

In particular, models such as the Corolla and Camry drove sales growth and served as key factors in performance improvement. Last year, Corolla sales in the U.S. increased by 5%, and Camry sales rose by 6.5%.

Toyota's management stated that this change in ranking is not expected to be permanent. Jack Hollis, Senior Vice President and head of Toyota's U.S. sales, said, "Maintaining the number one position is neither our goal nor priority, nor do we see it as sustainable." He added that Toyota has no intention of using the sales achievement of surpassing GM in any form of advertising.

WSJ reported that GM declined to comment on Toyota's rise to number one and the change in sales rankings when requested for a statement.

Besides Toyota, domestic companies such as Hyundai Motor and Kia also performed strongly. Hyundai sold 738,081 units, marking a sharp 19% increase year-on-year. Notably, retail sales to individual customers reached a record high of 694,349 units. Kia recorded 701,416 units sold, a 20% increase year-on-year, surpassing 700,000 units in annual U.S. sales for the first time.

Additionally, Mazda, Volkswagen, and BMW reportedly achieved above-average sales performance, according to research firm Cox Automotive.

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