Auto sales signal vigor in demand

Consumer demand for new automobiles appears to be holding steady in the United States – at least for now – despite recent interest rate increases, concerns about the broader economy and record-high vehicle prices.

The latest evidence came Monday when General Motors said its new-vehicle sales in the U.S. market increased 24% in the third quarter, as higher sales of cars and certain SUVs more than offset lower sales of full-size pickup trucks.

The automaker said it sold 555,580 light trucks and cars in the three-month period that ended Sept. 30, compared with 446,997 for the same period in 2021, when production of key components in Asia was constrained.

Supply-chain issues have hampered the industry since the start of the pandemic, but GM said Monday that its access to computer chips had improved.

Other automakers offered mixed signals about the U.S. new-vehicle market. South Korean automakers Hyundai and Kia reported record third-quarter sales to consumers through dealerships. Volkswagen sales rose 12% in the third quarter, after substantial declines in the first two quarters of 2022.

But Toyota Motor said its U.S. sales fell 7% in the quarter, to 526,017 vehicles, despite a surge of 17% in September. Stellantis, the automaker formed last year in the merger of Fiat Chrysler and Peugeot SA, said its third-quarter sales fell 6%.

Ford Motor is scheduled to disclose its sales Tuesday.

Edmunds, an automotive market researcher, estimated that 3.3 million new vehicles were sold in the third quarter, a slight dip from a year ago.

For nearly two years, automakers have been unable to produce as many vehicles as consumers were willing to buy. The manufacturing shortfall resulted from coronavirus-related shutdowns and the chip shortage.

Rising prices, however, remain a concern and could eventually cause some shoppers to defer purchases of new vehicles, said Jessica Caldwell, a senior analyst at Edmunds.

She noted that the average purchase price of a new vehicle in September was $47,257, an increase of 6% from a year ago. The average monthly payment on new vehicles rose to $703 in the third quarter, from $630 a year ago.

“At some point, the consumer may not be in the best position to accept these higher prices,” she said.