(NewsNation) — In spite of inflation and increasing interest rates, new vehicle sales for top global automakers rose in the second quarter in the U.S., driven by improved supply and robust demand, suggesting that the impact of interest rates has not yet had a significant impact on purchases.
A recent report from The Wall Street Journal revealed that the auto industry has experienced a surge of more than 10% in vehicle sales through June.
Through the first half of the year, sticker shock didn’t deter consumers from buying new vehicles. However, it remains to be seen whether the trend will continue in the next quarter.
According to auto industry experts, it’s a sign that the auto industry’s recovering after facing a challenging couple of years. Vehicle production was severely impacted during the coronavirus pandemic due to a shortage of semiconductor chips.
In the U.S., auto sales have surged by 12% compared to the previous year, primarily driven by strong consumer demand and improved supply.
Automakers highlight that consumers currently show a preference for higher-priced models.
“Many people putting off buying a car so they could wait for the prices to come down or they wanted what they wanted,” said Brian Moody, the executive editor for Kelley Blue Book. “They’re spending $40 to $45,000 or in some cases $50,000 for a new car — you want what you want.”
All of this comes despite the record-high prices for car buyers.
Here’s a rundown of some of the leading automakers and the boost they’ve experienced:
- General Motors and Toyota Motor Corporation have shown the highest growth, as GM reported a nearly 19% rise in U.S. sales and Toyota reported a 7.13% increase in U.S. sales.
- Stellantis has also witnessed a positive trend, with a 6% rise in U.S. sales
- Hyundai Motor Company has experienced a 14% increase in U.S. sales
- Electric vehicles have rapidly grown, with Rivian Motors, specializing in electric pickup trucks and SUVs, reporting a 59% increase in sales during the second quarter.
- Tesla achieved even higher growth with an 83% jump in sales globally
“Nobody expected this for sure,” said James Mohs, an associate professor of accounting and taxation at the University of New Haven. “I mean, if you need a car to go to work, you need a car. You buy. Interest is irrelevant.”
If you’re considering purchasing a new car, experts recommend waiting for a while. As inventories rebuild, dealerships and automakers are projected to offer more discounts in the second half of the year. So, you could potentially get a better value for your money.