US new vehicle sales fall in Q3 on fewer selling days, inflationary headwinds (updated)

Hyundai

01/10/2024 18:44

(Adds details from automakers' quarterly sales data throughout,
graphic)
    By Nathan Gomes
       Oct 1 (Reuters) - 
    Top U.S. automakers reported a fall in their third-quarter
sales on Tuesday, hurt by fewer selling days and weaker consumer
spending amid inflationary challenges and higher interest rates.
  
    Carmakers have relied on crossovers and pickup trucks for
years to drive the bulk of their sales, but that growth is
starting to sputter as customers work with tighter budgets
because of economic uncertainties.
    General Motors  GM.N  reported a 2.2% fall in quarterly
sales, as demand for some of its big pickup trucks such as its
best-selling Silverado weakened. 
    
    Crosstown rival Ford  F.N  is expected to post weaker sales
growth when it reports third-quarter sales on Wednesday,
according to data from Cox Automotive.
    Toyota reported an 8% fall in sales but said it had built
extra inventory of vehicles and parts ahead of the U.S. port
strikes, which began earlier in the day, to minimize disruption.
        Industry experts expected automakers to rebound with
stronger sales in the third quarter but discounts offered by
companies were not enough to invigorate demand.
  
        "Consumers in the market continue to be pressured by
high interest rates and slow-to-recede vehicle prices, which are
translating to high monthly payments," said Chris Hopson,
principal analyst at S&P Global Mobility.
  
    Chrysler-parent Stellantis  STLAM.MI  on Monday cut its 2024
profit forecast and warned it would burn more cash than expected
due to weak global demand and competition from Chinese rivals
offering cheaper cars.
    Buyers are now opting for more affordable models such as
compact pickup trucks and SUVs such as Ford's Maverick and
Chevrolet's Trax.
    Subcompact SUVs and compact cars are two of the hottest
vehicle segments right now, helped by their relatively
affordable price tags, said Charlie Chesbrough, senior economist
at Cox Automotive.
    Hyundai  011760.KS  posted a 5% rise in quarterly sales,
aided by sales of hybrid variants of crossovers such as its
Tucson and Santa Fe. Its sister company Kia  000270.KS  reported
a near 7% decline.

    

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Auto sales over the last five quarters    https://reut.rs/3TR54sp
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 (Reporting by Nathan Gomes in Bengaluru and Ben Klayman in
Detroit; Editing by Leroy Leo)
 ((Nathan.Gomes@thomsonreuters.com))