Car Sales Fell in 2022, But GM Takes Back Title As Country's No. 1 Automaker

U.S. automobile sales plunged 8% last year, hampered by parts shortages and rising interest rates, according to Cox Automotive.

Nearly 14 million fewer vehicles were sold in 2022 compared to 2021, which was also a 20% drop from 2016, the industry's best year.

Despite the down year, General Motors reclaimed its long-held position as top U.S. carmaker after a one-year hiatus. Toyota claimed the top spot in 2021 after GM held the title every year since 1931.

Cox expects a 4% increase for December car sales compares to the same month a year ago. The sales volume is expected to increase by 11% from November to December.

Inventory shortages kept car prices high in 2022. In addition, ongoing supply chain issues and the global chip shortage slowed production. Cox reports that 2022 began with a lack of supply but is ending with a lack of demand. Cox blamed rising interest rates that pushed auto loan costs to a 20-year high to account for the loss of at least 2 million sales.

The consulting firm predicts a slow-growing economy next year that will put further pressure on automotive companies as inventory increases.

Honda Motor Co. and Nissan Motor Co. saw a significant decrease in sales, while General Motors took back the title as America's top automaker from Toyota Motor Corp. with a 2.5% increase in sales.

CNBC reports that in 2022, Toyota sold 2.1 million units, down 9.6% from the previous year. GM sold 2.27 million units, with a 41.4% increase in the 4th quarter. Reuters reports part of Toyota's sales decline was caused by a global parts shortage that caused the company to cut back on production in November.

Cox reports that electric vehicle sales in the U.S. will surpass 1 million units in 2023. GM and Toyota have been embracing EVs. GM announced it is increasing production of its Chevrolet Bolt EV and its Bold EUV by over 70,000 units and launching three new Chevrolet EVs through the year.

Toyota announced that in 2022, electric vehicles accounted for almost one-quarter of its total sales and will have 23 EVs available in 2023.

Toyota and GM won several categories in Kelly Blue Book's Best 2023 Best Buy Awards announced last month. Toyota had three wins: the 2023 Lexus ES won the best luxury car, the 2023 Toyota Sienna won the best minivan, and the 2023 Toyota Tacoma won the best-midsized pickup truck. The GM's 2023 Chevrolet Bolt EUV won the best electric vehicle under $35,000.

The automaker with the most models on the list was Hyundai Motor Company, with eight vehicles claiming the top spots.