Toyota Motor reported better-than-expected auto sales for the third quarter, with strong demand for electric vehicles driving the increase. Despite ongoing strikes by autoworkers over a new labor contract, analysts predict that new vehicle sales in the US will continue to recover in the third quarter due to improving inventories and fleet demand. General Motors and Ford Motor are also set to report their Q3 auto sales, with investors keeping a close eye on electric vehicle sales. Globally, automakers are shifting towards electric vehicles, following the success of Tesla.
Toyota sold 590,296 vehicles in Q3, an increase of 12.2% compared to the same period last year. A strong September contributed to this growth, with a 13.9% increase in vehicle sales from the previous year. Nearly a third of September’s total sales were attributed to “electrified” vehicles, which include battery electric, fuel cell, hybrid, and plug-in hybrid vehicles. Toyota expects this strong sales momentum to continue for the rest of 2023, driven by improving dealership stock and new product launches. However, Toyota’s stock slid 3.1%, falling below the 50-day moving average.
Ford Motor is estimated to have sold 493,373 vehicles in the third quarter, up 6.9% from the previous year. Stellantis, on the other hand, is expected to report a 0.3% decline in sales compared to Q3 2022. Honda Motor is anticipated to see a significant increase in sales, up 49.3% from the same period last year. Despite factors such as high interest rates and ongoing inflation, which have made new cars less accessible for consumers, pent-up demand has fueled the vehicle market. However, analysts warn that an extended strike by the United Auto Workers could reverse the industry’s progress in inventory.