The auto industry, excluding Tesla, experienced only modest sales growth in the second quarter of 2024 due to factors such as high interest rates, increased vehicle prices, and economic uncertainty impacting consumer behavior.
Furthermore, disruptions caused by a cyberattack on a software and data services provider for dealerships contributed to a slowdown in late June sales.
According to Cox Automotive, 4.1 million new vehicles were sold in the U.S. during the second quarter, showing a slight increase from the previous year. However, this growth rate is lower compared to the 5% increase seen in the first quarter of 2024. In the first half of the year, 7.9 million new vehicles were sold, reflecting a 3% increase from the same period last year.
Cox’s chief economist, Jonathan Smoke, anticipates continued slow growth for the remainder of the year, citing market uncertainty. Despite this, there is no expectation of a major sales collapse.
General Motors reported selling nearly 700,000 vehicles in the U.S. in the second quarter, a marginal increase from the previous year. The company’s best performance since 2020’s fourth quarter was achieved during this period.
Of the total quarterly sales, approximately 22,000 were electric vehicles, marking a 40% rise compared to the previous year. Notably, the Cadillac Lyriq and Chevrolet Blazer were the top-selling electric models, both of which utilize G.M.’s advanced Ultium battery technology.
Conversely, Toyota’s sales figures show positive growth, with over 621,000 vehicles sold in the second quarter, representing a 9% increase from the same period last year.
Toyota, known for its hybrid and plug-in hybrid models, experienced a significant boost in sales. In the second quarter, nearly 250,000 hybrid and electric vehicles were sold, marking a notable 63% increase from the previous year.
Meanwhile, Tesla faced a decline in global sales, with a 4.8% drop in the second quarter compared to the previous year. This downward trend has persisted for two consecutive quarters.
The competitive landscape in the electric vehicle market has intensified for Tesla due to increased rivalry from Chinese automakers offering more affordable options with advanced features.
In Europe, Tesla faces tough competition, ranking fifth in electric car sales behind several major players. The company’s market share in the U.S. for electric vehicles is also expected to decrease below 50% this year.
Stellantis, the parent company of Chrysler, Dodge, Ram, and Jeep, experienced a sales decline in the second quarter, falling behind competitors like Honda and Hyundai-Kia.
Looking ahead, Ford Motor is set to report sales figures soon, with industry experts keeping a close eye on market trends influenced by factors like high vehicle prices and interest rates.
