Sequoia sales surge to most since 2011
Toyota sold more full-size Sequoias in November than it has in any month since 2011 — a strong start for the redesigned 2023 SUV it began manufacturing in San Antonio in August and that hit the market in October.
Toyota dealers sold 1,745 of the full-sized SUVS in November, its strongest sales month since December 2011. The Japanese automaker also saw sales of its San Antonio-built Tundra pickup truck hit 10,443 last month, its best month since July.
Through November, more than 94,000 of the redesigned 2022 Tundras have sold — already more than the 82,000 trucks sold all of last year.
Toyota’s overall sales in November increased by 10 percent from the same month a year ago, about the same sales bump as the U.S. auto industry as a whole last month, according to Cox
Automotive.
Supply shortages largely stemming from the pandemic prevented automakers from building enough vehicles to meet demand for much of the past two years, but those conditions have eased this fall. As a result, the inventory of new vehicles for sale in the U.S. was 1.56 million at the end of October, up 78 percent from the same time last year. Inventory was still well below the pre-pandemic inventory of 3.49 million vehicles in October 2019.
But as vehicle inventory in the U.S. has rebounded, the Federal Reserve has spent the last year swiftly increasing interest rates to combat inflation. In a reversal from recent years, customer demand — which had been buoyed by low interest rates — is now becoming the bigger challenge for automakers instead of supply shortages.
“The supply situation in the new vehicle market has significantly
improved over recent months,” said Charlie Chesbrough, senior economist with Cox Automotive. “The key question now is whether buyers will be willing and able to buy.”
The average price paid in the U.S. for a new vehicle hit $48,281 in October, slightly below the all-time high set in August. Meanwhile, elevated auto loan rates pushed typical monthly car payments to nearly $750 in October, a record high.
Cox analysts maintained their estimate of 13.7 million new vehicle sales in the U.S. this year, which would be the fewest in a decade.
“Higher rates are already shifting access to vehicles and financing towards wealthier consumers,” said Jonathan Smoke, chief economist with Cox Automotive. “Affordability will be challenged for years to come in both the new and used markets. It's not the Fed's fault, but it will impact consumer access to transportation.”