Toyota unseats General Motors to become top car seller in US

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Toyota unseats General Motors to become top car seller in US

General Motors, Toyota, US car seller, Electric Vehicles
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Highlights 

  • Japanese Carmaker Toyota surpasses General Motors to grab the title of top car seller in the US.
  • GM has said that its total sales were down about 13% due to semiconductor supply chain constraints.
  • Both companies have reported steep fourth-quarter sales declines due to the scarcity of vital computer chips that plagued the industry last year.

The beginning of the new year has not been as pleasant for US car giant General Motors as the previous years have been. This is because the US’ leading automotive Company has lost its 90-year crown as a top car seller to Japanese carmaker Toyota. 

As the shortage of semiconductors embroils the automotive industry, Toyota overtook GM to bag number one, selling over 2.3 million vehicles in 2021, up 10%, as per Tuesday figures. 

Both companies have reported steep fourth-quarter sales declines due to the scarcity of vital computer chips that plagued the industry last year. 

Toyota succeeded to increase its annual sales in the US by 10.4% to 2.3 million, whereas General Motors saw a decline of 12.9% to 2.2 million.

The figures also indicated:

  • Toyota witnessed gains for two best-selling sedans, the Camry and the Corolla, and a moderate drop in its Rav4 compact SUV sales. The Company’s full-sized Highlander SUV recorded higher sales in 2021.
  • GM, which depends heavily on trucks than Toyota, experienced an annual 10.8% drop in its Silverado pickup trucks along with a 6.4% dip in its GMC truck line.

Impact of Coronavirus pandemic on Car buyers:

Overall, analysts believe that the number of new cars sold in the United States increased approximately 2% in 2021 against 2020 when customers were reeling under the burden of coronavirus pandemic.

However, purchasing remained slower than the pre-pandemic levels as companies grappled with supply chain woes.

Bottom Line:

As part of its business strategy, General Motors is aggressively pushing into electric vehicles (EV).
Toyota is expected to see US$3 billion in new US investments targeting EV development, while Ford has said that it will nearly double the production capacity for the electric version of its top-selling F-150 pickup truck.

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