Surging energy prices, the uptrend in electric vehicle usage, and global economic recession fears are just some factors affecting the automotive industry.
The BestBrokers team decided to analyze the sales and price data of the ten best-selling cars in the USA for the period 2019-2022. This would give us an insight into how the automotive industry has faced the changes in supply chains and logistics imposed by the pandemic and the currently-raging energy crisis.
Ford, Chevrolet, Dodge, Toyota, Honda, and GMC are the automakers that produce the most sought-after cars in the US.
There are interesting observations that can be made, as with some US automakers, the price increase goes as high as 22%, while with some Asian ones, the increase is below the current inflation rate.
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The average weekly earnings for US employees increased by over 15% for the same timeframe. This would mean that the adjusted consumer purchasing power increased when it comes to buying some makes and models (especially Toyota) and decreased with others.
Chevrolet Silverado and GMC Sierra 1500 are the models with the biggest price surge over the period, with respectively 22.2% and 19.5% increases in the price for the base model.
On the other end, the Japanese giant Toyota not only leads the market with four models in the top 10 best sellers but also keeps their prices as low as possible with an increase between 5% and 7.6% over a three-year period – Camry (7.6%), Highlander (6.3%), RAV4 (5.15%) and Tacoma (5%).
“With the rising inflation and energy prices, it comes as no surprise that the leading car manufacturers raise their prices in order to keep their margins to some extent. However, Toyota is the company that seems to desire even bigger market share than their competitors as they are known for their relatively high production quality, but their prices have increased very little compared to the other automakers,” comments Alan Goldberg, market analyst at BestBrokers.
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“We are yet to see which direction the fossil fuel car industry will take with the rise in popularity of EV cars and the fossil energy price hike, but surely the market leaders will do their best to take advantage of the obstacles in the industry and try to get a bigger market share, thanks to the technology and resources they can rely on. It is very common for Asian automakers’ mentality to look at crises not only in a negative way but also as new opportunities, and the minimal increases in Toyota prices seem to be confirming that,” concludes Alan.
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A Dime Saved
Hi! I am a millennial mom with a passion for personal finance. I have always been “into” personal finance but got inspired to start my blog after a period of extended unemployment. That experience really changed the way I viewed my relationship with money and the importance of accessible personal finance education.