U.S. sales fell at Hyundai and Kia last month as tight inventories caused by supply-chain bottlenecks continue to undermine the auto industry’s recovery from the pandemic.
Volume dropped 21 percent at Hyundai, snapping a two-month streak of gains, while Kia deliveries declined 11 percent after an increase of 2.3 percent in February. First-quarter volume also fell at both Korean brands.
Hyundai’s top-selling models all posted double-digit declines last month: Santa Fe, down 12 percent; Sonata, off 82 percent; Tucson, down 13 percent; Elantra, off 19 percent, Kona, down 42 percent; and Palisade, off 21 percent.
Hyundai’s March results also reflected zero fleet deliveries for the third straight month.
The company said it ended March with 3,057 cars and 14,214 light trucks in stock, down from 3,977 cars and 14,644 crossovers and pickups on hand at the end of February.
Sales rose for the 16th straight month at Genesis behind a 53 percent increase in March.
Lean new-vehicle inventories, along with rising inflation and gasoline prices that have clouded the economic outlook, will result in sharply lower March and first-quarter U.S. car and light-truck sales.
TrueCar, Cox Automotive, LMC and J.D. Power analysts project March U.S. new-vehicle deliveries will drop 22 to 26 percent to around 1.2 million.
The seasonally adjusted, annualized rate of sales is expected to fall to 12.7 million to 13.6 million, down from 17.8 million in March 2021, which kicked off the industry’s hottest three-month stretch on record.
Elevated gasoline prices and rising interest rates will also undermine gains and consumer confidence this year, even as job and wage growth remain strong, analysts say.
“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, executive director at Edmunds.
Most automakers are scheduled to release U.S. sales results for March and the first quarter later Friday. Ford Motor Co., Volvo, Daimler and Jaguar Land Rover will report results next week or later in month.
