April 3 (Reuters) - U.S. auto sales are expected to rise
for a second straight quarter as automakers are able to ship
more vehicles to dealers on time, analysts said, while focus
will also be on watching out for signs of plateauing demand.
Vehicle production took a hit after the pandemic disrupted
supply of semiconductor chips and other raw materials, hurting
carmakers' ability to meet the upsurge in demand for personal
mobility. The companies have been playing catch-up ever since as
the supply chain snags gradually ease.
But rising interest rates and fears of a recession may play
spoilsport in an industry where most vehicle purchases are
financed with loans, analysts say. The average transaction price
of vehicles, too, has surged over the last one year.
"Consumers are facing credit uncertainty as rapidly rising
interest rates have created barriers to entry for even the most
qualified buyers," said Jessica Caldwell, executive director of
insights at auto research firm Edmunds.
Detroit giant General Motors Co said earlier this
year it would halt production at its Fort Wayne Assembly truck
plant in Indiana for two weeks to manage inventory.
The automaker is set to post a 15% rise in first-quarter
U.S. sales, while Japanese rival Toyota Motor Corp's sales are likely to fall nearly 10%, when they publish data
beginning Monday, according to consultant Cox Automotive.
Toyota has continued to struggle with inventory shortages
sparked by supply constraints, losing its crown as the top
selling U.S. automaker to GM.
Edmunds forecasts overall 3,502,324 new cars and trucks to
be sold in the U.S. in the quarter through March, higher than
last year, but a 1.8% decrease from the fourth quarter.
Trucks and crossover SUVs are expected to account for
majority of new retail sales in the quarter, according to
automotive data company J.D. Power.
(Reporting by Nathan Gomes in Bengaluru; Editing by Shilpi
Majumdar)
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