Huge price reductions and increased availability are driving growth in the electric vehicle market, which saw record sales in 2023, as major manufacturers like Tesla, Ford, and General Motors lower their prices and pass on cost savings from raw materials to consumers.
Used car sales and prices have surged during the pandemic due to supply chain disruptions, leading to a shortage of new and used cars, causing prices to remain elevated and creating a favorable market for the automotive industry.
The United Auto Workers and the "Big Three" U.S. automakers are negotiating a new labor contract, with the possibility of a strike looming and workers demanding a 20% raise and other benefits, which could potentially impact the Michigan economy and lead to costlier electric vehicles.
The U.S. auto industry is expected to see a strong recovery in the third quarter, with sales volumes in September forecasted to increase by over 13% from 2022, and Q3 sales to surpass 3.9 million, a jump of more than 15% from the same timeframe last year.
Dealerships across the United States are experiencing a significant shortage of new vehicle inventory, causing consumers to face limited options and higher prices.
Despite strikes and high interest rates, analysts expect new vehicle sales in the U.S. to continue growing, with an estimated annualized pace of 15.5 million in September, along with positive sales growth forecasts for general motors, Toyota, Ford, and Honda.
General Motors reported a 21.4% increase in U.S. auto sales for the third quarter, driven by strong sales of pickups and SUVs, as well as fleet vehicles, while the impact of the ongoing United Auto Workers strike has been negligible so far.
Ford Motor's third-quarter U.S. new vehicle sales rose 7.7%, driven by increased sales of traditional pickup trucks, while sales of electric vehicles were up by 14.8% and hybrid sales saw a 41.4% increase.
Ford Motor reported a nearly 8% increase in U.S. auto sales for the third quarter, driven by strong demand for crossover SUVs and pickup trucks, despite concerns over supply disruptions caused by the ongoing strike by the United Auto Workers union.
Ford Motor Co.'s sales rose 7.7% in the third quarter, driven by higher sales of hybrid vehicles and trucks, while the effects of the United Auto Workers strike have yet to significantly impact sales.
Mercedes-Benz's electric vehicle sales in the US have risen by 284% in Q3 compared to last year, bringing their market share to nearly 15%, while Ford and GM's market share remains around 3% to 4%.
US electric vehicle sales reached a new milestone in the third quarter, with a 50% increase from last year, but Tesla's market share is shrinking as other automakers see significant EV sales gains.
Sales at U.S. retailers increased by a larger-than-expected 0.7% in September, driven by strong demand at auto dealers and online stores, indicating that households have sufficient buying power to support economic growth.
Production at U.S. factories increased more than expected in September, suggesting strong momentum for the economy despite strikes in the automobile industry curbing motor vehicle output.
US electric vehicle sales have reached a tipping point, with a 50% increase in the third quarter compared to last year, but automakers are concerned about the need to be cost-competitive in the market due to consumer reluctance to pay premiums for EVs over gas or hybrid vehicles.
