Auto makers are reporting a jump in vehicle sales in the opening months of 2021, boosted by continued consumer demand and some easier year-ago comparisons, but chip shortages and other supply-chain snags threaten to derail that momentum.
General Motors Co. on Thursday posted a nearly 4% increase in its U.S. sales for the January-through-March period, illustrating that its business continues to recover during the pandemic despite supply constraints. The company said it expects auto demand to remain strong throughout the year.
Toyota Motor Corp. , which wasn’t hit by the chip shortage until later in the quarter, reported a 22% increase in its first-quarter U.S. sales. Meanwhile, South Korean auto maker Hyundai Motor Co. said it was able to keep U.S. dealer inventory steady during the first quarter, and reported a 28% increase in sales.
Other major auto makers including Ford Motor Co. and Stellantis NV, formerly Fiat Chrysler Automobiles, are also expected to report higher U.S. auto sales for the first quarter, according to car-shopping website Edmunds.com.
Overall, analysts forecast U.S. auto sales will rise roughly 8% for the three-month period, and the industry’s annualized selling pace in March could hit 16.5 million vehicles, a sign that the level of demand is about on par with what it was before the Covid-19 pandemic.
