Ending 90-year-streak, Toyota dethrones GM to become America’s top-selling automaker in 2021
From crowded shipping lines to chip shortages, the issues of 2021 forced manufacturers to scramble to meet up the demand.
FollowFor the first time since 1931, General Motors Co. is not the top-selling automaker in the United States. Toyota Motor Corp., located in Japan, dethroned the Detroit-based business last year, increasing sales by 10% despite a 28% dip in the fourth quarter. Toyota sold 2.3 million automobiles in the United States in 2021, slightly more than General Motors' 2.2 million.
The transition at the top exemplifies the year's turbulence that many manufacturers will be happy to put behind them. From crowded shipping lines to chip shortages, the issues of 2021 forced manufacturers to scramble to meet up the demand. While industrywide sales are likely to increase somewhat starting in 2020, supply constraints have shattered any aspirations of a quick rebound from the early outbreak.
According to the average projection of six industry experts polled by Bloomberg, carmakers sold around 12.5 million new vehicles in December, a 23 per cent decrease from the previous year. The scope of the problems became more apparent on Tuesday when most significant automakers reported fourth-quarter and full-year sales in the United States. Ford Motor Company is slated to reveal its financial results on Wednesday.
The inventory shortages pushed some consumers to more lucrative, option-laden versions while the widespread acceptance of electric vehicles surged. Indeed, Tesla Inc. surpassed Wall Street's forecasts with record quarterly international deliveries on Sunday. GM's sales fell 13% year on year, driven down by a 43 per cent drop in the last quarter. Chevy Silverado sales plunged more than 30% in the third quarter, while GMC Sierra sales decreased 21%. The automaker quickly blamed chip limitations for its difficulties, claiming that they slowed sales by 13%.
As a result, GM was compelled to select where it allocated supply. Sales of big sport utility cars such as the Chevy Tahoe and Suburban, GMC Yukon, and Cadillac Escalade increased despite a poor quarter. Importantly for investors, GM stated that the semiconductor supply improved near the end of the year and that the firm expects additional improvements in 2022.
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Toyota's good performance in 2021 was aided by sedan sales such as the Corolla and Camry. While the RAV4 remained the automaker's best-selling car, sales of the compact SUV fell 5% year on year. Like Toyota, Honda Motor Co. managed to increase sales for the year despite a severe decrease in the end. December sales plummeted 23% to 105,068 automobiles, while 2021 sales increased 8.9% to 1.47 million.
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