The global Semiconductor shortage continued to cause production problems for the industry as US new vehicle sales fell more than 21% in the second quarter.
Even with high inflation and rising interest rates, demand still outpaced supply from April through June. Many consumers have stopped buying new-vehicles because of the low supply.
The 3.49 million vehicles sold during the quarter was 933,000 less than the same period last year.
According to J.D. Power, the average sales price of a new vehicle for the first six months of the year was nearly $45,000, a record that is 17.5% higher than last year. More than a quarter of consumers who financed a new vehicle in June had monthly payments of $1,000 or more.
The company built 95,000 vehicles without one part or another due to shortages of chips and other parts. By the end of the year, the incomplete vehicles are expected to be finished and sold.
Jack Hollis, head of Toyota sales in North America, said the chip shortage didn't improve as much as the company expected in the first half of the year, and he doesn't think it will improve until next summer.
The producers of microchips are producing at maximum speed because they have high demand. There is no way to catch up. It is falling behind.
Toyota sales were down for the first half of the year. GM regained the title of top-selling automaker in the U.S. when it passed the Japanese company.
The company posted a sales decline. The company blamed supply chain issues for the fall in sales. Nissan sales plummeted for the quarter, as did the sales of Hyundai.
Ford isn't expected to report sales figures until Tuesday, while most of the other manufacturers are expected to do so on Friday.
Nearly 3.5 million new vehicles were sold in the U.S. in the last quarter, a decline of 20.8% from the same period a year ago, according to a prediction by the website. It's frustrating to see inventory shortages for the foreseeable future.
Most consumers who are purchasing vehicles in these conditions are either in a financial position where money is less of a consideration or are doing so out of necessity.
The company's electric vehicle, the BZ4x, and more efficient gas-electric hybrid vehicles are some of the more popular ones. He said that hybrid and plug-in vehicles accounted for 27% of Toyota's sales in June.
Inventory and sales are being limited by supply issues. He said the company had about 8,500 vehicles on dealer lots at the end of the month. Within 36 hours of arrival, vehicles are being sold.
The trend of cutting car models as SUVs have become America's favorite body style was furthered by the announcement that the Accent and Veloster small cars would no longer be sold in the U.S.
Randy Parker, head of sales forHyundai Motor America, said he expects the chip shortage to get better this year and predicts a 30% production increase over last year.
The Ioniq 5 is the company's main electric vehicle and it is selling well.
Smaller, fuel efficient gasoline vehicles do not seem to be faring as well. Sales of the Elantra were halted for a time due to a safety issue.
During the first half of the year, Honda's Civic sales fell while Toyota's Corolla sales fell.