GM Reclaims U.S. Auto Sales Crown from Toyota, According to Reuters

By Nathan Gomes and Abhijith Ganapavaram

General Motors Co has regained its position as the leading automotive seller in the U.S., surpassing rival Toyota Motor Corp in 2022. This success was largely due to GM’s ability to fulfill the strong demand for vehicles, despite the ongoing supply chain issues affecting the industry.

On Wednesday, GM’s shares rose by 2.7%, reaching $34.75, after the company reported a 2.5% increase in sales for the year, totaling 2,274,088 vehicles. This figure eclipses Toyota’s 2022 sales of 2,108,458 units, marking a significant competition between the two automakers.

The automotive sector has faced challenges due to rising material costs and a persistent shortage of semiconductors, leading to production setbacks for various manufacturers and keeping vehicle prices high. Asian automakers, in particular, have been more negatively impacted.

Cox Automotive’s senior economist, Charlie Chesbrough, noted that Toyota continues to suffer from limited inventory. The Japanese company reduced its full-year production target in November, and its SUV sales—a crucial segment—declined by 8.6% in 2022.

Despite these challenges, Toyota’s executives have pointed to some encouraging trends, indicating a gradual but steady increase in inventory levels. Andrew Gillel, senior vice president of automotive operations at Toyota, expressed optimism about improving inventory throughout the first quarter and the rest of the year.

Meanwhile, other automakers such as Hyundai, Kia, Mazda, and Honda also reported decreases in sales on Wednesday.

In December, U.S. new vehicle sales totaled 1.26 million units, with an annual sales rate of 13.31 million, according to data from Wards Intelligence. Analysts have expressed concern that rising vehicle prices due to inflation and increasing interest rates may adversely affect sales in 2023.

Toyota executive David Christ emphasized that affordability remains a significant concern but anticipates strong demand this year. To attract buyers, automakers may need to resume offering incentives, a practice that had been largely suspended during the pandemic.