US auto sales slide in Q1; Toyota outsells GM

BANGKOK, Apr 03 (Reuters): US automakers on Friday reported a slump in first-quarter domestic sales, as the entire industry was slammed by chip shortages and disruptions to supply chains.

Toyota, which in 2021 upstaged GM as the top-selling automaker in the United States, outsold the company in the first quarter on increased demand for its Lexus hybrid and electric vehicles.

South Korea's Hyundai Motor and Kia Motors and Japan's Mazda Motor Corp all posted a drop in overall US quarterly auto sales. Hyundai said electrified vehicle retail sales surged 241 per cent in the January-March period from a year earlier.

"If gas prices remain high, that's going to continue to push consumers toward green technology," said Randy Parker, Hyundai's senior vice president for US sales.

"Skyrocketing gas prices were top of mind for consumers in March, but the lack of inventory is what ultimately depressed new vehicle sales in the first quarter," said Jessica Caldwell, Edmunds' executive director of insights.

She said inventory issues will persist well into the rest of the year as Russia's invasion of Ukraine would add to supply chain challenges.

Jack Hollis, senior vice president of automotive operations at Toyota Motor North America, said he does not expect a major, long-term shift in the US vehicle market - where about three-quarters of new vehicles sold are trucks and SUVs.