2023 was great for car sales, 2024 probably won’t be
Good morning! It’s Wednesday, January 3, 2024, that is Morning shiftYour daily report on the most important automotive headlines from around the world, in one place. Here are the important stories you need to know.
First gear: Car sales will be hard to follow in 2023
New car sales in the United States It is likely to rise by low double digits in 2023 on the back of demand Transitions And Small trucksBut the journey may end in 2024, analysts say High interest rates affect the demand for new cars.
Automakers boosted production To keep up with high demand in the wake of the pandemic, but demand is now declining as we enter 2024. Reuters:
Industry consultant Cox Automotive described 2023 as a “surprisingly strong sales year” but added that “high car prices and high interest rates remain the industry’s Grinch problem right now, and this trend will continue into next year.”
Car dealers had to do that Displays Generous incentives and discounts in December to clear old stock.
Full-year sales in 2023 are expected to rise 12% to about 15.5 million units, according to Cox. JD Power and GlobalData, a consulting firm, expected an increase of 13.2% during this period.
“This is the third year in a row that American consumers have spent more than half a trillion dollars to purchase new cars,” J.D. Power said in a report last month.
Internal combustion vehicles weren’t the only ones seeing an increase in sales. Electric vehicle sales are also expected to rise. Teslathe best-selling electric vehicle manufacturer in the United States, reported a 38 percent increase in deliveries in 2023.
However, not everyone will join in on the fun. excellent It is expected to report a 1.4 percent decline in sales last year. This doesn’t really matter though. Stellantis is an emotion-based company, after all.
Second Gear: Nissan, GM Warn of Trump’s IRA Plans
Automotive manufacturers such as General Motors And April They warn that fPresident Donald Trump saysPlan to get rid of Inflation reduction law It will hurt the growth of electric vehicle sales in the United States.
Irish Republican Army It is supposed to be the driving force behind electric vehicle manufacturing in the United States. This action is intended Preventing consumers from buying Chinese technology, sparking tens of billions in investment in the United States from battery companies and automakers. from Financial Times:
But in November, Trump’s senior campaign officials and advisers told the Financial Times that he planned to reform US policy during his second term. With electric vehicle sales growth slowing and automakers pulling back on some spending plans, industry executives now fear electric vehicle sales will falter without incentives.
Paul Jacobson, GM’s chief financial officer, said: Irish Republican Army It had a “huge benefit” to the electric car market, helping to stimulate sales. “We don’t want to end up saying this car program is really good with the IRA, only for the IRA to disappear, and now all of a sudden, the car can’t make money.”
Nissan CEO Makoto Uchida, whose automaker has two U.S. plants and who has previously said that “the world needs to transition” away from internal combustion engines, said the measures helped boost electric vehicle sales in the country “in the medium term.” To the long one. .
He stressed that he did not want to comment on the politics of this measure, but added that “the penetration of electric vehicles would be much more promising with this type of work.”
Electric vehicle sales It accounted for 9 percent of total new car sales in the first nine months of 2023, and The Biden administration wants that number to reach 50 percent By the end of the decade. I can’t imagine Trump being too concerned about what the Biden administration is aiming for.
If there’s one way to own soy lipox, it’s by withdrawing a $7,500 tax incentive. certainly.
Third Gear: A December to Remember for Hyundai/Kia
Hyundai and Kia Can’t stop winning, people. Hyundai US sales rose for the seventeenth straight month, and Come here Setting a record for annual sales. Twin automakers are killing the game. from Car News:
Hyundai said December deliveries rose 4% to 75,164 vehicles, helping produce record fourth-quarter volume of 206,048 vehicles, up 5%, and record annual sales of 801,195 vehicles, up 11%.
Hyundai said U.S. retail sales have now hit records for three consecutive years, driven by improving inventories, more generous discounts, and an expanding lineup of electric vehicles and popular crossovers. Sales of Tucson, Hyundai’s biggest seller, rose 20 percent to 209,624 vehicles last year, marking the first time deliveries of the compact crossover crossed 200,000 vehicles.
The company said it ended December with 69,097 cars and light trucks in U.S. inventory, down from 73,923 at the end of November but up sharply from 37,379 at the end of 2022.
Kia snapped a 16-month streak of sales increases with December sales volume of 60,275, down 147 units, but the company easily set an annual sales record of 782,451, up 13 percent from 2022. Two of Kia’s best sellers – the Sportage and Telluride – Recorded lower sales in December.
Genesis posted its 14th straight monthly gain, with December trading volume rising 10 percent to 6,803. The luxury brand’s U.S. sales rose 23 percent to an all-time high of 69,175 last year.
Hyundai Motor Group It is expected to overtake Stellantis as the No. 4 seller in the U.S. in 2023, trailing only GM, Toyota and Ford. HMG was outpacing Stellantis in U.S. sales by about 62,000 vehicles through the first three quarters of 2023. That’s okay, Stellantis. I still love you. Money is not everything.
Gear 4: VinFast to set up Indian battery factory
Vietnamese electric car manufacturer VinFast It is scheduled to open its first factory in IndiaWhere the batteries will be manufactured. The facility is expected to be built in the southern state of Tamil Nadu. The information comes from a number of sources that spoke to Reuters, but were unable to obtain official confirmation from them VinFast Or the state. from Reuters:
The company will make batteries for electric vehicles at the factory in Thoothukudi city, one of the people said, adding that this is separate from its previously announced plans to assemble vehicles with parts shipped from Vietnam.
“Several VinFast officials visited Thoothukudi district in Tamil Nadu to check the sites,” a fourth source, a senior official directly involved in the matter, said on Tuesday.
Reuters mentioned In September, VinFast began hiring for sales, legal and back-office jobs in India, looking for employees who “dare to think, dare to do, and dare to face difficulties.”
It is not immediately clear the size of the investment or when the VinFast factory in Tamil Nadu will be operational.
In October of 2023, VinFast It said it will build assembly plants in India and Indonesia, each of which will have a capacity of 50,000 vehicles per year and capital expenditures of $200 million initially. Production is not supposed to start until 2026
Separately, EV taxi operator Green SM, majority owned by VinFast’s founder, also plans to establish the world’s third-largest car market in India, VinFast CEO Le Thi Thu Thuy told Reuters in October.
VinFast is also open to bringing e-scooters and e-cars to India, the first source said.
Dubbed the Detroit of Asia, Chennai, the capital of Tamil Nadu, and other regions already host several electric vehicle companies including Indian two-wheeler makers Ola Electric and Ather as well as China’s BYD.
We know that VinFast can (sort of) manufacture cars, but it remains to be seen if it can sell them in any real volume in the US
Reverse: Hell yeah, Delaware
Neutral: Electric City
On the radio: Timbaland – “Carry Out” with Justin Timberlake
(tags for translation) Toyota