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US Auto Sales Plummet to 26-Year Low

Strategic Insights

— 1 min read

U.S. auto sales have hit an all-time low in 26 years, with January sales levels falling to the lowest since at least 1982. The struggles of the industry have been exacerbated by rental car companies buying fewer new cars. Major automakers have seen significant declines in sales, with General Motors, Ford, Toyota, Honda, and Nissan all experiencing drops in January sales.

Key Takeaways:

  • U.S. auto sales have slumped to their lowest level in 26 years, according to industry experts.
  • General Motors' sales dipped 49 percent from a year ago, while Ford Motor Co.'s sales fell 39 percent at its Ford, Lincoln, and Mercury brands, and 40 percent overall when including Volvo sales.
  • Toyota's U.S. sales dipped 32 percent, while Honda sales slid 28 percent. Nissan Motor Co. reported a 30 percent drop in sales.
  • Car buyer incentives rose an average 12 percent to $2,714 per vehicle, with Toyota experiencing the biggest increase at 92 percent to $1,973.
  • General Motors experienced the only decline of the six biggest auto makers at 9.9 percent to an average of $2,992.
  • Industry analysts note that the current market conditions have made it unprecedented times for the auto industry, with no company immune to the struggles.
  • January is expected to be the first month on record that U.S. auto sales trail sales in China, according to General Motors's sales analyst Mike DiGiovanni.

Statistics:

  • Average car buyer incentive: $2,714 per vehicle
  • Toyota's average car buyer incentive: $1,973
  • General Motors' average car buyer incentive: $2,992
  • Percentage increase in car buyer incentives: 12%
  • Toyota's percentage increase in car buyer incentives: 92%
  • General Motors' percentage decline in car buyer incentives: 9.9%
  • Nissan Motor Co.'s percentage drop in sales: 30%
  • Toyota's percentage drop in sales: 32%
  • Honda's percentage drop in sales: 28%

Sources:

  • CNN (February 3, 2023): "US auto sales slump to 26-year low"
  • The Wall Street Journal (no date): "Car Buyer Incentives Rise 12%"
  • UPI (February 3, 2023): "US Auto Sales Have Fallen to 26-Year Low"

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