US Auto Sales Surge in 2023, Electric Vehicles Gain Market Share

Summary

  • The Detroit automaker saw U.S. new vehicle sales rise by 14.1% to 2.6 million units in 2023, shrugging off the effects of a costly auto strike.
  • Toyota’s annual sales also saw an increase of 6.6% with 2.25 million vehicles sold.
  • Total automobile sales in the U.S. for 2023 stood at 15.5 million vehicles, the highest since 2019, and surpassed sales in 2022 by approximately 1.6 million units.
  • A surge in electric vehicles (EVs) sales was also noticeable in 2023, particularly for Toyota and the Detroit automaker whose EV sales rose by 30.4% and accounted for 29.2% and 2.23% of total electrified vehicle sales, respectively.

A Look At US Automobile Sales

The Detroit automaker reported a remarkable fourteen percent increase in the sales of new vehicles in the U.S. in 2023, setting the tally at approximately 2.6 million units. These figures were indicative of strong demand despite a debilitating auto strike. Concurrently, Toyota reported a 6.6% increase in annual sales, with an estimated count of 2.25 million vehicles.

Last year, automakers collectively sold around 15.5 million vehicles in the U.S., representing the highest total since 2019, and significantly topping nearly 13.9 million sales in 2022. This resurgence in sales was due to companies cranking up the production to meet the sustained demand for new vehicles in 2023.

On Electric Vehicles (EVs)

However, there were concerns that high interest rates might stifle demand in the current year. Despite these prevailing market conditions, electric vehicles made major strides in consumer spending in 2023. Toyota announced a significant uptick in the sales of its hybrid and all-electric models, which rose by 30.4% to 657,327 vehicles, accounting for 29.2% of its overall U.S. sales.

Toyota’s pure EVs, the BZ4X and Lexus RZ, sold 14,715 units in 2023, making up about 2.23% of the total electric vehicle sales. The Detroit automaker also reported decent EV sales, selling 75,883 units.

Client and Market Response

The Detroit automaker, while experiencing a dip in its share values following the announcement of its full-year sales, anticipates its strong performance to spill over into 2024. With suspected total industry sales of about 16 million units, it has also offered $7,500 as incentives on EVs that lost a U.S. government tax credit this week. Hyundai’s annual sales rose by 4%, with a significant proportion of 55,783 units being EV sales.

Projection for EV Sales

It is projected that total U.S. EV sales will account for approximately 8% of overall auto sales in 2023, potentially rising to 10% this year. Despite this, high interest rates may pose a challenge to EV demand. “EVs sales growth is likely to continue, but not at the rapid speed experienced in the past,” according to a report by AutoForecast Solutions.

Acknowledging the surge in auto sales, particularly of EVs, can present tactical advantages for forex traders and asset managers concerning related asset classes, given their potential impacts on the markets. There are anticipations that this advancement in the auto industry might influence the trading and value assets of the concerned companies.

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