Overview of April Auto Sales#
US auto sales in April 2023 reached a seasonally adjusted annual rate of 16.1 million units, slightly surpassing the expected 16.0 million units, according to Morgan Stanley. However, this figure represents a 6% decline compared to the same month last year and a 2% decrease from March 2023.
Year-Over-Year Decline#
The year-over-year drop in sales is notable, especially considering that April 2022 experienced a surge in demand due to tariff-related purchases. Additionally, consumer preferences continue to shift towards light trucks, such as SUVs and pickups, rather than traditional passenger cars.
Hybrid and Electric Vehicle Trends#
Sales of hybrid vehicles, which include both traditional hybrids and plug-in hybrids, increased by 8% year-over-year, likely influenced by rising gasoline prices. In fact, hybrid sales outpaced battery electric vehicle sales by a ratio of 3 to 1. Conversely, sales of battery electric vehicles fell by 22% compared to last year, with their market share dropping to 5.7% from 6.0% in March and 6.9% in April 2022.
Market Share Insights#
Stellantis, the parent company of brands like Jeep and Chrysler, gained market share, reaching 7.9%, an increase of 63 basis points year-over-year, although it declined slightly from the previous month. General Motors and Ford saw their market shares decrease to 17.0% and 12.9%, respectively. Asian automakers collectively held a strong 50% market share, reflecting growth from the prior year. Among European brands, Volkswagen increased its share to 3.0%, while Audi and BMW experienced slight fluctuations.
Inventory Levels#
Market inventories rose to 51 days from 48 days in March and 46 days in April 2022. Stellantis reported an increase in inventories to 347,000 units, equating to 83 days of supply, compared to 69 days last month and 67 days last year.