Apr 2023

Market Gains Thanks to Fleet

U.S. sales at General Motors and Ford Motor Co. rose in the first quarter and Toyota Motor Corp.’s deliveries declined for a third straight month, as inventories steadily recover from a microchip shortage and discounts, while still low, rise across much of the industry.

Volume is being driven mostly by stronger fleet, light-truck shipments and stable retail deliveries, even as higher interest rates and MSRPs, falling used-vehicle prices and tightening credit conditions sideline some new-car shoppers.

Fleet sales tallied 280,000 in March, higher than forecasts, LMC Automotive said in a preliminary report, and accounted for 20% of industry volume, the highest mix since the pandemic unfolded, and up from 15% in March 2022. Retail volume totaled 1.09 million last month, LMC said.