U.S. sales at Hyundai and Kia rose double digits last month from a year ago, with both brands setting November records.
Deliveries jumped 43 percent at Hyundai and 25 percent at Kia.
“This was a terrific November for sales and especially our line-up of eco-friendly vehicles,” Hyundai Motor America CEO Randy Parker said in a statement Thursday. “Despite economic headwinds, we were still able to record an all-time retail and total sales record in November.”
The results come amid rising production and inventory across the industry after the microchip shortage and other supply chain snags limited automakers from being able to meet demand for new vehicles for much of the past two years.
Hyundai said its inventory has more than doubled from a year ago, to 39,898 vehicles at the end of November. That’s up from 31,529 a month earlier and 17,096 in November 2021.
Toyota Motor Corp., Honda Motor Co., Subaru and Mazda will release November sales later Tuesday, followed by results for the month from Ford Motor Co. on Friday. The rest of the industry reports U.S. sales on a quarterly basis.
U.S. light-vehicle deliveries were expected to rise from November 2021 as inventory shortages continued to ease. Higher interest rates are increasing customers’ monthly payments, but dealerships are now selling fewer vehicles above sticker price — 41 percent in November, versus 50 percent in July, according to J.D. Power and LMC Automotive.
“November results demonstrate that vehicle production is continuing to improve, with available retail inventory exceeding 1 million units for a second consecutive month and a larger share of manufacturers’ production being allocated to fleet customers,” said Thomas King, president of the data and analytics division at J.D. Power.
“On the retail side, demand continues to exceed supply, as evidenced by continued strength in transaction prices, retailer profits, inventory turn rates and minimal manufacturer discounting. However, as inventories and interest rates rise, these metrics will show signs of either moderation or decline.”
TrueCar said November retail sales were on pace to be roughly even with a year ago but that fleet sales were rebounding significantly from the low levels caused by production disruptions in 2020 and 2021. It projected a 68 percent jump in fleet sales from November 2021.
“Inventories are on pace for a fourth consecutive month of double-digit increases. Consumers, however, continue to face affordability challenges and high monthly payments, keeping many on the sidelines,” said Zack Krelle, Industry Analyst at TrueCar. “To maintain sales momentum, manufacturers appear to be shifting some of the new supply to non-retail sales.”
