Toyota Motor has reported better-than-expected auto sales for the third quarter, with a strong September contributing to the positive performance. Demand for electric vehicles has been a major driver of sales for the company. However, Toyota stock has taken a hit, falling below a key level. General Motors and Ford Motor are also set to report their Q3 auto sales. However, the automakers are currently facing a strike by autoworkers over a new labor contract.
Despite the ongoing strike and high interest rates, analysts predict that new vehicle sales in the US will continue to recover in the third quarter. This is attributed to improving inventories and fleet demand. Cox Auto estimates show the projected sales volume for Q3 and the growth or decline compared to the previous year. General Motors is expected to report 658,433 vehicles sold in Q3, reflecting a 19.3% increase compared to the same period last year. However, investors will be closely monitoring the sales of electric vehicles by both GM and Ford, as both companies are looking to increase their EV sales.
Toyota Motor sold 590,296 vehicles in Q3, surpassing the estimated 572,764 vehicles. The company reported a strong September, with a 13.9% increase in sales compared to the previous year. About one-third of the September sales were attributed to “electrified” vehicles, which include battery electric vehicles, fuel cell, hybrid, and plug-in hybrid vehicles. Toyota expects this strong sales momentum to continue for the rest of 2023, citing improving stock at dealerships and new product launches. However, Toyota stock declined by 3.1%, falling below the 50-day moving average. Ford Motor is yet to report its Q3 sales, while Stellantis is expected to show a slight decline in sales compared to last year. Honda Motor is projected to have a significant increase in sales of 49.3% compared to Q3 2022. Cox Automotive analysts believe that the annualized pace of September sales will reach 15.5 million, and they have raised their full-year forecast for new vehicle sales in the US market.
In conclusion, Toyota Motor has reported strong Q3 auto sales, driven by demand for electric vehicles. However, the company’s stock has suffered a decline. General Motors, Ford Motor, Stellantis, and Honda also have upcoming reports on their auto sales, and the ongoing autoworkers strike continues to be a major issue. Despite challenges such as high interest rates and inflation, analysts expect new vehicle sales to continue recovering due to improving inventories and fleet demand. However, potential risks include the impact of the strike on inventory and the ability to sustain sales momentum.
