Toyota says demand is excessive for its autos regardless of falling U.S. gross sales

• Toyota mentioned that demand for its vehicles, vans, and EVs stays excessive, regardless of a fall in US gross sales.
• A spokesperson advised Insider {that a} provide drawback was responsible, which might final into 2023.
• Analysts warn that financial worries might see US automobile gross sales fall.

Toyota Motor Company says demand from US prospects for its autos stays excessive, regardless of ongoing provide shortages and logistics challenges that would final till 2023. 

The world’s largest automaker by quantity was among the many main producers to launch third-quarter US gross sales information on Monday. The information confirmed an general decline of seven.1% within the three months to September 2022,  in contrast with the identical interval final 12 months. 

Requested how the outcomes might influence the automaker’s yearly gross sales projection, a spokesperson advised Insider that they count on yearly gross sales to be flat or barely down from 2021 US gross sales. 

“There is a provide drawback, not demand, which stays robust as buyer curiosity in our autos continues to be excessive,” the spokesperson mentioned.

Toyota bought 2.3 million items to People in 2021, making it the US’ bestselling automaker and dethroning GM for the primary time in 90 years. So far this 12 months, Toyota Motor North America, which incorporates its Lexus Division, has bought 1,572,714 autos. That compares with 1,857,884 million over the identical time interval final 12 months, per its newest figures. 

A big a part of its success in 2021 has been, analysts say, that Toyota has been higher shielded towards provide chain shortages, particularly of semiconductors, which hampered the output of its friends. 

Nevertheless, the corporate warned on Thursday that it was revising its October manufacturing forecast by round 50,000 autos globally, attributable to semiconductor shortages slowing down manufacturing at some Japanese crops.

“Whereas we’re nonetheless promoting each automotive we will construct, we proceed to expertise unevenness inside our provide chain, together with logistics system, by way of the rest of this 12 months and into 2023,” the spokesperson mentioned of the US market.  

Whereas gross sales general had been down for the quarter, Toyota’s automotive and truck gross sales bounced again through the month of September, by 32% and 12% respectively. It was a development matched by US rivals Ford, which additionally noticed gross sales bounce again through the month.

September historically sees automotive gross sales bounce as automakers unveil Labor Day promotions and filter out year-end fashions, mentioned Thomas King, president of the info and analytics division at J.D. Energy in a September gross sales forecast. 

Analysts nonetheless warn that rising inflation, and better rates of interest, might begin to dampen shopper demand over the approaching months. 

On September 28, Cox Automotive, which tracks US automotive gross sales, minimize its 2022 annual gross sales forecast for brand new and used autos from 14.4 million to 13.7 million. 

“The availability scarcity has doubtless created some pent-up demand—people who had been basically ready in line for stock to return,” mentioned Charlie Chesbrough, senior economist at Cox Automotive mentioned within the September briefing.

“However the latest adjustments within the financial outlook from rising rates of interest is starting to chip away at demand,” he added.