Consumer purchases that have been delayed since the pandemic surge
From July to September, 4 million units were sold at an average new price of 61.93 million won.
The U.S. auto industry announced its performance this summer, showing a strong increase in new car sales despite high prices, continuously rising interest rates, and even some temporary strikes in the Detroit area.
According to the auto industry, new vehicle sales rose 16.3% between July and September as consumer demand remains strong. This is very high considering that the loan interest rate for purchasing a new car is 7.4% and the average price of a vehicle sold is over $45,500 (KRW 61,925,500).
The supply of automobiles is continuing to recover as the shortage of various components, including computer semiconductors, that began during the COVID-19 pandemic has recently subsided.
As automobile consumption increases, more and more people are purchasing vehicles, and the amount of purchases has increased even though the average monthly income is only $736 (1,001,696 won).
Ivan Drury, research director at the automobile website Edmunds.com, says, “Today, 100% of car purchases are replacement of old cars and purchases by end users.”
Demand for cars has increased since the start of the COVID-19 pandemic in 2020, but many people have postponed purchases in anticipation of lower interest rates and greater supply, leading to lower prices. But with the Federal Reserve starting to raise interest rates, experts say we can’t wait any longer.
“Unfortunately, some consumers are now being forced to buy a new car to put out an urgent fire. “This is because problems continue to occur, such as transmission failures in existing vehicles,” Drury said.
Motor Intelligence.com also announced that U.S. automakers sold 4 million cars from July to September.
Sales increased by 21.2% for GM, 12.2% for Toyota, 52.7% for Honda, and 40.8% for Nissan.
Hyundai Motor sales were reported to have increased by a relatively small 10.2% and Kia Motors sales were reported to have increased 13.8%.
However, sales of Stellantis, which began to phase out gasoline vehicles, actually decreased by 1.3%.
Ford is scheduled to announce sales figures late on the 4th, and Tesla announced global sales on the 2nd and announced that sales in the United States increased by 19.5%.
The rapid progress of electric vehicles is also attracting attention. From January to September of this year, there was a 50.9% increase compared to the previous year, raising the proportion of electric vehicles in total automobile demand in the United States to 7.5%. The number of electric vehicles purchased by American consumers between January and September reached a whopping 875,798.
Automotive experts say that the recent strike by the United Automobile Workers (UAW) targeting GM, Stellantis, and Ford did not have much of a impact on vehicle sales.
The strike, which took place in the second half of September, was limited to three large car assembly plants and the production lines of some vehicle models, so the overall impact was believed to be small.
[디트로이트(미 미시간주) =AP/뉴시스]
Source: Donga
Mark Jones is a world traveler and journalist for News Rebeat. With a curious mind and a love of adventure, Mark brings a unique perspective to the latest global events and provides in-depth and thought-provoking coverage of the world at large.