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Vehicle Sales

 

“Davidson” submits:

The US Light Vehicle market is dominated by 5 brands, GM at 16.8%, Toyota at 14.5%, Ford at 14%, Hyundai Kia at 10.5% and Honda at 8.9%. The current sales pace can be argued as being held back by Toyota which has the lowest inventories and because of this the highest relative demand by consumers. Should Toyota solve its supply chain issues for the US, I argue that Vehicle Sales SAAR(Seasonally Adjusted Annual Rate) would rise into 16.5-17 SAAR till supply/demand normalized. With an avg days dealer inventory of 96, Toyota is woefully undersupplied at just 40 days while every other dealer is oversupplied.  The oversupply is the result of EV production consumers have been avoiding preferring internal combustion or hybrid powered vehicles.
COVID is still responsible for market dislocation. However, government has made multiple unforced errors since that have resulted in additional manufacturing issues. Some of Toyota’s inventories have improved a little and one can only hope they solve the rest as the demand for used internal combustion engine and hybrid vehicles remain strong.